The Federal Executive has blocked the export of in the neighborhood produced Liquefied Petroleum Fuel, often referred to as cooking gasoline, to prioritise home provide.
The measure introduced via the Minister of Situation Petroleum Assets (Fuel), Ekperikpe Ekpo, on Tuesday, will start November 1, 2024, and is to take on the lofty gasoline value in Nigeria.
This used to be contained in a remark via the spokesman of minister, Louis Ibah, in Abuja.
Ibah mentioned the verdict used to be reached next the minister convened a high-level assembly in Abuja with stakeholders to handle the skyrocketing value and its baby sitter sadness on Nigerians.
The PUNCH stories that the cost of cooking gasoline skyrocketed from N700/kg in June 2023, round when President Bola Tinubu assumed place of work, to N1,500/kg in October 2024.
This represents a few 114 in step with cent build up inside the 16 months.
In a travel to take on the hovering value of cooking gasoline, the minister established a high-level committee in November 2023 led via the Eminent Government of the NMDPRA, Mr Farouk Ahmed, with key stakeholders within the LPG price chain.
Then again, in spite of this struggle to handle the problem, costs have endured to vary, lately hovering to N1,500 from a mean of N1,100 – N1,250/kg.
However the minister, in a unutilized directive to leave the fee, gave temporary and long-term objectives.
He mentioned, “With effect from November 1, 2024, NNPCL and LPG producers are to stop exporting LPG produced in-country or import equivalent volumes of LPG exported at cost-reflective prices.”
In the case of the pricing framework, he directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority to satisfy with stakeholders to derive the pricing framework inside 90 days.
The remark added, “Pricing Framework: NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing price to cost of in-country production, rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and the Nigerian people are required to pay much higher price for an essential commodity the country is naturally endowed with.”
Providing a long-term resolution, the remark added that inside twelve months, amenities will likely be evolved to mix, bind, and ship LPG, finishing exports till the marketplace achieves sufficiency and worth steadiness.
The remark famous that the minister expressed deep worry over the continual build up in the cost of Liquefied Petroleum Fuel, popularly referred to as cooking gasoline within the nation.
Ekpo’s directives are a step in opposition to addressing the inherent demanding situations and making sure Nigerians have get admission to to reasonably priced cooking gasoline.