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Nigeria bans the exportation of Liquefied Petroleum Gas (LPG)

The Nigerian federal government has halted the exportation of the Liquefied Petroleum Gas, commonly known as cooking gas.

The Federal Government says it is interacting with the critical sectors to halt the exportation of Liquefied Petroleum Gas (LPG), also known as cooking gas given its rising cost.

The federal government said that all LPG produced within the country would be domesticated to crash the price of gas.

The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo disclosed this at the opening of its Internal Stakeholders’ Workshop, on Thursday in Abuja.

The News Agency of Nigeria (NAN) reports that the workshop which is across the gas value chain on repositioning the nation’s gas sector, has its theme as “Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development “.

“All LPG produced within the country will have to be domesticated and when this is done the volume will increase and of course, the price will automatically crash.

“I am in contact with the regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the producers of LPG such as Chevron, Mobile and Shell, we have meetings on a daily basis.

“There is hope that things will turn around, we do not need to make noise about it and it is based on this that we have this engagement to find out the problems and address them once and for all,” Ekpo said.

On conversion of vehicles to Compressed Natural Gas (CNG), to cushion the effect of fuel subsidy removal, Ekpo said he has been interfacing with the Presidential Initiative on CNG towards realising the goal.

He said, “The moment I get a clearer picture about it, I will address you accordingly,’’ adding that the impact on withdrawal of taxes and levies from gas-related equipment would not reflect that way because the investors are humans and would like to maximise profit, though the policy has been put in place.

“But at the end of the day the regulators have to come in and interface with them to ensure they crash the price,’’ he said.

According to him, the demonstration by the federal government by withdrawing all taxes and levies from the importation of gas-related equipment is a big incentive.

The workshop also featured a presentation by Mrs Oluremi Komolafe, Director Gas of the ministry on highlights from the minister’s consultation with the operators in the nation’s gas sector in Feb. 6.

Speaking on the recommendations by the operators, she said they called for balancing gas pricing while considering the impact on the average consumer is imperative for sustainable sectoral growth.

Komolafe said the LPG retailers urged the Minister to look into the issue of the soaring price of cooking gas as it had become relatively unaffordable to the common man.

She said the retailers highlighted that the surge in price was capable of jeopardising the clean cooking initiative and made the use of charcoal an attractive and cheaper alternative.

“They also mentioned the issue of substandard gas cylinders as a great challenge and called on the Ministry to look into the issue and enact a national cylinder and accessories policy to curb it,’’ she said.

NAN checks showed that cooking gas price increased to N1,400 as against N950 per kg in January, 2024.

The decision to ban cooking gas exports underscores the government’s recognition of the critical role that energy affordability plays in driving socio-economic development. Access to clean and affordable cooking fuel is essential for improving household welfare, enhancing food security, and promoting sustainable development. By taking decisive action to stabilize cooking gas prices, the government demonstrates its commitment to addressing the needs of the most vulnerable segments of society and fostering inclusive growth.

In addition to halting exports, the federal government is actively engaging with stakeholders across the energy sector to implement a comprehensive strategy for addressing the root causes of the cooking gas price surge. This includes initiatives aimed at boosting domestic production capacity, enhancing distribution networks, and promoting investment in infrastructure. By addressing supply-side constraints and improving operational efficiency, authorities seek to create a more resilient and competitive market environment that benefits both producers and consumers.

Furthermore, the government is exploring opportunities to incentivize the adoption of alternative energy sources and promote energy efficiency measures to reduce dependence on cooking gas. Initiatives such as the promotion of clean cooking technologies, renewable energy solutions, and energy conservation practices are integral to achieving long-term sustainability and resilience in the energy sector. By diversifying the energy mix and promoting innovation, Nigeria can reduce its reliance on imported fossil fuels and build a more sustainable energy future.

While the government’s efforts to ban cooking gas exports represent a step in the right direction, addressing the underlying structural challenges facing the energy sector will require sustained commitment and collaboration from all stakeholders. This includes fostering a conducive regulatory environment, promoting private sector investment, and enhancing capacity building initiatives. By working together towards common goals, Nigeria can unlock the full potential of its energy resources and pave the way for a brighter, more prosperous future for all.

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