The Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in a statement by his media aide, expressed deep concern over the continuing increase in the price of LPG.
The Minister had in a bid to tackle the soaring price of cooking gas established a high-level committee in November 2023, led by the Authority Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, and comprising key stakeholders in the LPG value chain.
Despite this effort to address the issue, prices have continued to fluctuate, recently soaring to N1,525 from an average of N1,100 – N1,250 per kg.
The statement explained that Ekpo convened a meeting with stakeholders to address the skyrocketing price and its attendant hardship on Nigerians.
“To combat this, the Gas Minister has issued the following directives: Short Term Solution: With effect 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.
“Pricing Framework: NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing price to cost of in-country production, rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and the Nigerian people are required to pay much higher price for an essential commodity the country is naturally endowed with.
“Long-Term Solution: Within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability.
“Ekpo’s directives are a step towards addressing the inherent challenges and ensuring Nigerians have access to affordable cooking gas.
“The new measures aim to improve availability and ensure affordability to protect Nigerians from the economic hardship caused by LPG price hike”, the Minister added.
Source | Vanguard
