The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, expressed concern over the increasing costs, which have surged from N1,100-N1,250 per kg to N1,525 per kg.
In response, Ekpo convened a meeting with key stakeholders in the LPG value chain to address the impact of these price hikes on Nigerians. The minister outlined the following directives:
1. Short-Term Solution: Effective November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and LPG producers must halt LPG exports. If they continue exporting, they are required to import an equivalent volume at cost-reflective prices.
2. Pricing Framework: The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will collaborate with stakeholders over the next 90 days to develop a new domestic LPG pricing system. This framework will be based on in-country production costs, replacing the current practice of using international market prices from regions like the Americas and Far East Asia.
3. Long-Term Solution: Over the next 12 months, the government aims to develop infrastructure for LPG blending, storage, and distribution. The goal is to halt exports until domestic supply meets demand and prices stabilize.
The minister emphasized that these measures are designed to boost supply, ensure affordability, and ease the economic burden on Nigerians caused by rising LPG prices.
