The Federal Government on Thursday announced the ban on exportation of Liquefied Petroleum Gas (LPG) also known as cooking gas, as part of its current efforts to boost domestic supply volume and crash the commodity’s surging price nationwide.
The Minister of Petroleum (Gas), Ekperikpe Ekpo, who made this disclosure at the ‘Internal Stakeholders’ workshop with the theme ‘Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development’ in Abuja, confirmed that the government had directed LPG producers to stop exporting the commodity, following the recent jump in the cost of cooking gas.
On what government has done to moderate the rising cost of domestic gas, the minister said the ministry was discussing with critical stakeholders like the Nigerian Midstream and Downstream Petroleum Regulatory Authority and operators such as Mobil, Chevron, and Shell to address the issue.
According to him, when there is a stoppage of the exportation of the commodity, there will be adequate volume to meet domestic demand and by so doing invariably reduce its price in the market.
The Minister clarified: “We are interacting with critical stakeholders to ensure that there is no exportation of LPG. 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.
“With the issue of gas, you have seen the demonstration of the Federal Government by withdrawing all taxes and levies from the importation of gas-related equipment. It is a big incentive.
“On the issue of LPG (cooking gas), we are interacting with the critical sectors to ensure that there is no exportation of LPG. 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’m in contact with the regulator, NMDPRA, we have meetings almost daily with the producers of the gas like Mobil, Chevron and Shell. So there is that hope that things will turn around.
“And that is also why we are having this engagement to know exactly what the problems are so that we can address them once and for all”, Ekpo assured.
