Nigeria: LPG Users Hit Hard As Commodity Price Jumps By 33%

Consumers of Liquified Petroleum Gas LPG in the Republic of Nigeria are facing a difficult time as the price of the commodity, otherwise known as cooking gas, has risen by over 33 percent month-on-month from N360/kg in July to N480/kg in August.

According to report filed by Vanguard, a 12.5kg cylinder, which sold in Lagos for 4,500 Naira and 4,800 in Abuja in June and July, is now selling for 6,000 Naira.

The new prices come at the backdrop of the recent Federal Government’s efforts aimed at promoting more use of gas in Nigeria and its declaration of 2021-2030 as Nigeria’s decade of gas, meaning more demand for the commodity.

The Central Bank of Nigeria, CBN, had recently set up a N250 billion fund to expand the usage of gas.

Gas prices had recorded steady rise in recent months with market price at N4,400 in June and N3,200 in November/December 2020.

A resident of Agbado, Ogun State, Mr Obatomi Ajewole said the increase in the price of cooking gas has affected the measure of plate of food sold to customers by food vendors.

The Nigerian Association of Liquefied Petroleum Gas Marketers, NALPGAM, has attributed the latest rise in the price of cooking gas to Federal Government’s re-imposition of Value Added Tax (VAT) on imported LPG.

In a press statement, NALPGAM explained that Nigerians may have to pay up to N10,000 in the nearest future to refill 12.5 kilogram cylinder of cooking gas.

“It is unfortunate that the Federal Inland Revenue Service and the Federal Ministry of Finance have gone to resuscitate a product that has been exempted and gazetted from VAT.

“This was gazetted in 2019 and has encouraged domestic gas utilisation. Nigerians are already complaining about the prices of cooking gas across the country, and this would further worsen the situation.”

He cautioned that the initial objective of domestic availability would be defeated if cooking gas goes out of the reach of ordinary Nigerians due to the current increment in prices of the commodity.

Source: https://energynewsafrica.com