In spite of the Federal Government’s policy aimed at reducing the price of Liquified Petroleum Gas, also known as cooking gas, the price has continued to increase, an expert Dr Ayo Anthony, has said.
Dr Anthony, an economist, in an interview on Sunday in Abuja, however, noted that it takes time for the impact of government policies to be felt on the economy.
Recall that the Federal Government had announced the removal of customs duty and Value-Added Tax (VAT) on the importation of LPG and its associated equipment, as contained in a letter dated November 28, 2023. The letter was signed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
Also, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, had waded into the challenges of the constant price increment of cooking gas in the country’s domestic market.
The minister had constituted a committee and mandated them to recommend the best way to boost supplies and crash LPG prices, following the rise in prices in recent months, from about N700 per kg to above N900 per keg in parts of the country.
According to NAN, 5kg cooking gas is currently being sold at N4,750 to N4,900 and 12.5kg is sold at N11,875 to N12,300 in the Federal Capital Territory.
He said that cooking gas that had been stocked by marketers before the policy pronouncement would still be sold at the old price to cover the cost of importation.
“The seller will sell it at the price that covers the cost of importation of the gas.
“So until this stock finishes and they buy at the prevailing price that reflects the new government policy, that is when they will sell at the price that will show a reduction of VAT.”
According to NAN, recent data from the National Bureau of Statistics states that the average price of 5kg of cooking gas increased from N4,562.51 in October 2023 to N4,828.18 in November 2023.
The average cost of refilling a 12.5kg cooking gas increased by 5.78 per cent on a month-on-month basis, from N10,545.87 in October 2023 to N11,155.15 in November 2023.
(NAN)
