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Imports tax responsible for skyrocketing price of cooking gas by over N100 % – NALPGAM President
* As some Nigerians now cook with firewood
The National President, Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM),
Mr Oladapo Olatunbosun, has said that the Federal Government implementation of 7.5 per cent tax on imported Liquefied Petroleum Gas (LPG), commonly known as cooking gas is one of the reasons for skyrocketing price of the commodity by over 100 percent.
He made this assertion while speaking on Journalists Hangout, about the hike in price of cooking gas in the country.
He explained that the price of cooking gas has been on the increase since government began implementation of VAT on LPG imports.
According to him, some dealers were even mandated by government to pay the tax for gas imported several months back.
He said that Nigeria imports about 70 per cent of the commodity, while Nigeria Liquefied Natural Gas company supplies the rest.
According to him, other factors pushing the gas price upward include increase in the price of petroleum products in international market, lack of easy access to foreign exchange and the role of middle men in the business.
He called on government to suspend imports tax on cooking gas, in order to alleviate the suffering of low income earners in the country.
He said :
“Government should suspend imports tax collection on LPG because we are not producing enough locally. We should improve on local production first before talking about imports tax.
“At present, some gas plants do not even have the commodity. So, if nothing is done urgently to address the situation, many Nigerians will go back to the use of firewood. Already some people who cannot afford the commodity are now cooking with firewood, while others are using charcoal.”
Our news inquest revealed that the gas price for 3kg cylinder initially sold for N900 now goes for N1,800; 6kg is N3,400 while 12.5kg is between N6.800 and N7,000.
