‘Why Cooking Gas Price Won’t Crash Despite Export Ban’

‘Why Cooking Gas Price Won’t Crash Despite Export Ban’

Despite the November 1, 2024, implementation of a ban on Liquefied Petroleum Gas (LPG) exports, Nigerians may not witness a substantial decrease in cooking gas prices, experts say.
The ban, aimed at stabilizing prices and boosting local availability, requires domestic producers, including the Nigerian National Petroleum Company Limited (NNPCL), to halt LPG exports or import equivalent volumes at cost-reflective prices.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, confirmed that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) would establish a local pricing framework within 90 days, moving away from international market indices.
However, government officials, including spokespersons for the gas ministry, NNPCL, and NMDPRA, declined to provide updates on the ban’s status when Leadership Newspaper contacted them.
Lanre Bayewu, Executive Secretary of the Nigerian Liquefied and Compressed Gases Association, cautioned against expecting a dramatic reduction in LPG prices.
He highlighted economic challenges, including dollar-denominated gas prices and a weak naira, as ongoing obstacles to price stabilization.