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LPG export ban leads to a significant price reduction in Nigeria

A ban on Liquefied Petroleum Gas (LPG) exports implemented by the Nigerian government has resulted in a substantial decrease in domestic cooking gas prices, according to the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM).

Prices drop by over 30%.

NALPGAM President Oladapo Olatunbosun commended the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, for the policy change during a courtesy visit. Olatunbosun highlighted a price reduction from N1,400–1,500 per kilogramme to N900–1,000 per kilogramme, representing a significant drop of over 30%.

Addressing Domestic Supply Shortages

The government implemented the export ban in February 2024 to address a domestic supply shortage that caused a surge in LPG prices. NALPGAM had previously raised concerns about international oil companies exporting large volumes of gas while domestic consumers faced high costs.

Positive Impact on Consumers

Olatunbosun expressed his gratitude for the government’s intervention, stating, “Consumers can testify” to the positive impact of the ban. He added that people who previously abandoned gas due to high prices are now returning to the market.

Government Committed to Gas Availability

Minister Ekpo acknowledged the irony of Nigeria, a major gas producer, having low LPG consumption rates. He reaffirmed President Bola Tinubu’s commitment to increasing domestic gas utilisation and praised marketers for cooperating to adjust prices following the export ban.

Focus on Long-Term Affordability

Ekpo emphasised the government’s ongoing efforts to ensure Nigerians have access to affordable gas at the right price. He mentioned the removal of taxes and levies on gas equipment imports as another initiative to promote gas adoption.

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