Liquefied Petroleum Gas (LPG) dealers on Wednesday, June 5, the Nigerian government’s ban on importing Liquefied Petroleum Gas (LPG), also known as cooking gas, substantially reduced the commodity’s price. Cooking gas prices have plummeted from approximately N1,500 per kilogram to around N900 per kilogram.
During a June 5 meeting with Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), Oladapo Olatunbosun, President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), said that cooking gas prices had crashed from N20 million to N15 million per 20 metric tonnes, and at the retail level, from N1,400-N1,500 per kilogram to N900-N1,000 per kilogram.
Why cooking gas prices have crashed
In February 2024, the government directed LPG producers to halt exports. The Federal Government also demonstrated its commitment to resolving the gas issue by removing all taxes and levies on importing gas-related equipment, considering this a significant incentive.
The government actively engaged with critical sectors to ensure no LPG was exported. This is because they understand that domesticating all LPG produced within the country would increase the volume available locally and consequently lead to an automatic decrease in prices.
During the June 5 NALPGM visit to Ekpo’s office, Olatunbosun praised Minister Ekpo for his decisive action in mandating the domestication of all LPG produced in Nigeria. Olatunbosun highlighted that this policy has successfully reduced and stabilized the price of LPG in the domestic market.
In a statement issued by the minister’s media aide, Louis Ibah, Olatunbosun recalled a stakeholders’ consultative forum in Abuja in February 2024, where the association brought the issue of large-scale LPG exports by international oil companies to the minister’s attention. He emphasized that if these volumes were redirected to the domestic market, there would be no need to import LPG at high rates, ensuring price stability locally.
Olatunbosun expressed gratitude to the Federal Government for acting on their plea. He said:
“We appreciate that at the parley with us, you (Ekpo) promised that the issue of exporting LPG in the face of inadequate supply and soaring prices would be addressed. Indeed, you have taken steps to walk the talk.
“Today, we thank you because the ban on LPG export has significantly changed the market, and consumers can testify to this. People who abandoned their gas cylinders due to price hikes are returning, and we are confident that as the naira gains more value, consumers will benefit from even better LPG prices.”
Gas Minister Ekpo lamented Nigeria’s paradoxical situation as a major gas producer with one of the lowest LPG consumption rates globally. He assured his guests of President Bola Tinubu’s nationwide commitment to increasing gas usage.
He praised the LPG marketers for their cooperation in aligning prices with the current market realities following the export ban. “We would not have achieved this without your cooperation and support. We are working towards ensuring that our vast gas resources are available domestically at the right price for the public, in line with President Bola Tinubu’s vision for the sector and economy,” Ekpo stated.