Cost Of Gas: NLPGA Tackles FG

By Uche Mbah

The Nigeria Liquified Petroleum Gas Association, NLPGA, has taken the issue of the the cost of cooking gas head on with the Federal government.

The President, NLPGA, Mr Nuhu Yakubu, who spoke at the 11th NLPGA International Conference and Exhibition, with the theme, ‘Market growth and fiscal regulations – Rethinking the LPG supply gaps amid the challenging regulatory environment’, said that they are currently engaging with respective government agencies “in addressing issues around LPG supply, particularly access to foreign exchange, value-added tax, levies, etc. We believe our efforts will yield positive results in good time.”

“Also, it is not far-fetched to state, therefore, that sustaining the growing adoption of LPG through sector-friendly policies and programmes will support economic growth that will yield jobs and wealth creation.”

This came two days after the Minister of State for Petroleum, Timipre Sylva, expressed Government’s  helplessness over the skyrocketing gas price.

Currently, the 6kg gas cylinder now costs more than N4,000, up from N1,800 it was a few months ago.

“You all are aware that in Europe today, gas prices have gone up. There was even crisis in Europe relating to gas prices. The pricing of gas internationally now affects also the price of gas in the country” Sylva told state house correspondents Tuesday.

“Apart from that, there are some issues around VAT charges on imported gas, and of course, taxes on imported gas, which we are handling. But of course, quite frankly, these taxes on imported gas, you must also juxtapose it with the local producers of gas.”

But in a communiqué, stakeholders at the NLPGA event urged Government to implement the Petroleum Industry Act to fastrack investments, stimulate sustainable growth and create jobs for Nigerians.

“That such new investments are required to reduce Nigeria’s current dependence on imported LPG as well as meet rising future demand, based on increased population. That the government should be consistent in the conceptualisation and implementation of policies needed to ensure stability in the LPG sector”, it said.

The group also said that relevant stakeholders “need to be involved and carried along in the process of taking new decisions to ensure successful implementation. That the imposition of the Value Added Tax has negatively affected the sector in many unintended ways and should be eliminated.”

With the high prices of LPG, emphasis has been shifted to firewood, especially in the rural areas. Tree felling has become rampant and this goes against the global warming, and increases desertification and erosion.

The group said that new incentives should be introduced to foster investment.