In a strategic move to bolster domestic supply and drive down the local cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, the Federal Government has announced plans to halt the exportation of this essential commodity.
This directive has been communicated to LPG producers and key stakeholders within the industry, responding to the recent surge in cooking gas prices.
Examining the consumption trends, data from the Nigerian Midstream Downstream Petroleum Regulatory Authority reveals that in 2022, the nation’s total cooking gas consumption reached 1.4 million metric tonnes.
Domestic production during this period accounted for 600,000 metric tonnes, while imports contributed an additional 800,000 metric tonnes.
This contrasted with 2021 figures, where total consumption stood at approximately 800,000 metric tonnes, with 300,000 metric tonnes produced domestically and 500,000 metric tonnes imported.
The decision to curtail cooking gas exports aligns with the government’s ambition to meet the surging demand domestically, particularly as consumption targets aim for an impressive five million metric tonnes by 2029.
Notably, despite being an exporter, Nigeria heavily relies on imports to satisfy its internal cooking gas requirements.
Consequently, this shift in policy could involve discontinuing the export of more than 600,000 metric tonnes of cooking gas, demonstrating a concerted effort to drive down prices within the local market.