FG Issues Fresh Directives to Reduce Soaring LPG Costs
The federal government has introduced new measures aimed at curbing the continuous rise in Liquefied Petroleum Gas (LPG) prices, which have been a source of concern for Nigerians. The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, announced fresh directives to tackle the issue during a meeting with stakeholders in Abuja on Tuesday.
Despite earlier efforts to address the escalating cost of cooking gas, including the establishment of a high-level committee in November 2023 led by Mr. Farouk Ahmed, the Authority Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), prices have continued to fluctuate. Recently, the cost of LPG surged to N1,500 per kilogram from an average of N1,100 – N1,250.
In a bid to bring immediate relief to consumers, Ekpo issued several directives, starting with a short-term measure effective from November 1, 2024. “NNPCL and LPG producers are to stop exporting LPG produced in-country or import equivalent volumes of LPG exported at cost reflective prices,” Ekpo stated. This move is expected to stabilise supply and lower costs for Nigerian consumers.
The minister also directed NMDPRA to engage stakeholders in the LPG value chain to create a new domestic pricing framework within 90 days. The new framework will index the price of LPG to the cost of in-country production rather than linking it to external markets such as the Americas and Far East Asia. “It is unfair for Nigerians to pay exorbitant prices for a commodity the country is naturally endowed with,” Ekpo emphasised.
As part of a long-term solution, the minister outlined plans to develop facilities within 12 months for blending, storing, and delivering LPG. This will halt exports until the domestic market achieves sufficiency and price stability.
Ekpo’s directives are a decisive step towards addressing the challenges within the LPG sector. “The new measures aim to improve availability and ensure affordability to protect Nigerians from the economic hardship caused by LPG price hikes,” the Minister affirmed.
These initiatives are expected to provide relief to millions of Nigerians who rely on cooking gas for their daily needs, offering hope for a more stable and affordable market in the near future. Callers to Pay More as FG Proposes 125% Telecom Tax Hike
