For Nigerian households burdened by skyrocketing cooking gas prices, there’s a glimmer of hope! The Nigeria Customs Service (NCS) has finally removed duty on imported Liquefied Natural Gas (LPG), a move directly ordered by the federal government and expected to significantly reduce gas prices in the coming months.
The Burden of Rising Gas Prices:
The latest data from the National Bureau of Statistics paints a grim picture: the average price of a 12kg LPG cylinder has surpassed N10,000, placing a heavy strain on countless families.
This surge in cost has become a major source of concern, prompting the government to take decisive action.
Government Steps In:
Following through on its commitment to improve the domestic gas market, the federal government directed the NCS to implement a zero percent duty on LPG imports.
This directive, outlined in a circular titled “Fiscal Incentives for the Presidential Gas for Growth Initiative,” aims to boost gas utilization and accessibility.
Zero Duty, Lower Prices:
By eliminating import duties, the government hopes to incentivize LPG imports and increase market competition.
This, in turn, is expected to drive down prices, bringing much-needed relief to consumers. The target? To bring the current 12.5kg cylinder price of N11,155.15 down considerably.
Customs Confirms Implementation:
Speaking to Punch, Abdullahi Maiwada, the National Public Relations Officer of the NCS, confirmed the immediate implementation of the 100% waiver on LPG imports.
He clarified that importers require a support letter from the President’s Energy Special Adviser’s office to benefit from the exemption.
More than Just LPG:
The presidential gas growth initiative extends beyond LPG and encompasses various equipment.
CNG vehicles, electric vehicles, LPG/CNG conversion kits, gas burners, water heaters, and air conditioners are among the items included in the duty waiver program, further promoting a shift towards cleaner energy sources.
Addressing the Cabal Issue:
The high cost of cooking gas has been a complex issue, with accusations aimed at the alleged “cabal” of Liquefied Petroleum Gas terminal operators who control a significant portion of the market. The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has voiced concerns about these practices, urging for increased transparency and fair competition.
While the recent duty removal is a positive step, its effectiveness in controlling prices remains to be seen. Continuous monitoring and regulatory measures are crucial to ensure the benefits reach consumers and curb potential manipulation. Nevertheless, this initiative offers a beacon of hope for alleviating the burden of expensive cooking gas and making cleaner energy more accessible for all Nigerians.
- The Presidential Gas for Growth Initiative also offers fiscal incentives for local gas production and infrastructure development.
- Monitoring LPG pricing trends and reporting instances of price gouging can help hold companies accountable and ensure fair market practices.
- Investing in renewable energy sources like solar power can provide long-term solutions for reducing dependence on traditional cooking fuels.