… to develop LPG blending, storage, delivery facilities domestically within 12 months
Oredola Adeola
Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), has instructed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to collaborate with stakeholders to develop a domestic cooking gas pricing framework within 90 days, with emphasis on aligning costs with local production rather than external market indices from regions like the Americas or Asia.
The Minister made this known on Tuesday, when he convened a meeting with NMDPRA, NNPCL and other LPG stakeholders in Abuja, to address these price increases and the hardship they bring to Nigerians.
According to the Minister, despite previous efforts, including the establishment of a high-level committee led by Mr. Farouk Ahmed, Chief Executive of NMDPRA, to address the issues, prices have continued to fluctuate, recently reaching N1,500 per kg from an average of N1,100–N1,250.
The Minister has directed that, effective November 1, 2024, NNPCL and local LPG producers must either cease exporting domestically produced LPG or import equivalent volumes at cost-reflective prices.
As part of a new pricing framework, the Minister stated that the NMDPRA will, within 90 days, engage stakeholders to develop a domestic LPG pricing model based on local production costs.
He emphasized that it is unacceptable for Nigerians to pay premium prices for a commodity abundantly produced in the country, rather than relying on external market indices from the Americas or Asia.
