Financial Energy Review
Marketers have said that nationwide the prices of Liquefied Petroleum Gas (LPG) popularly known as cooking gas has has started dropping as the federal government is yet to Commence the collection of VAT on the product.
Mr Bassey Essien, the Executive Secretary, Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) explained that Marketers have resumed importation of LPG.
He said the impact was currently being felt as the prices of cooking gas had reduced from about N10,000 and N10,500 for a 12.5kg gas cylinder to about N7,400 and N9000, across the country.
According to Essien, supply has increased and as it continues, the prices will continue to decline but it is still a far cry from where we are coming from.
“In January 2021, a 20 metric tonne truck was about N4 million but it is currently about N9.7 million.
“We have to look at all the factors that drove the prices up including LPG demand in the international market and find a way to domesticate LPG supply to ensure price stability.’’
Meanwhile, Mr Michael Umudu, National Chairman, Liquefied Petroleum Gas Retailers (LPGAR) said the decline in the prices of cooking gas was a welcome development.
Umudu said: “we as retailers suffered so much because many of our customers switched to charcoal and firewood because they could no longer afford to buy gas.
“Now, supply is increasing and we are hoping that if it is sustained, there will be further reduction in the price of cooking gas.
“We learnt that government has not implemented the VAT policy but the pressure that the pronouncement brought to the industry led to the hike in the price of LPG.
“We want the government to come out openly to say that they have removed VAT on imported LPG so that there will be stability.’’
He emphasised the need for the government to encourage more Nigerians to embrace gas because of the attendant health benefits to the nation.
“Government has announced many policies aimed at deepening gas utilisation such as the Decade of Gas Development initiative and the National Gas Expansion Programme.
“However, these programmes need to be workable and not just on paper. There need to be infrastructure on ground to support their implementation,’’ Umudu added.
