There are strong indications that with the way the prices of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, are increasing, Nigerians may buy 12.5kg of the gas at N10,000 before December this year.
Due to the implementation of a 7.5 per cent tax (Valued Added Tax) on imported LPG, the cost of the commodity leap by over 100 percent within a period of eight months.
Currently, a 12.5kg of cooking gas that sold for about N3,500 in December 2020 had jumped to as high as N6,800 in parts of Abuja, while in some parts of Lagos, the same kg is being sold at N7,200.
The Executive Secretary, Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, however, warned that Nigerians should be expecting a higher price for 12.5kg if the government fails to do the needful urgently.
According to Essien, the price of 12.5kg gas could hit N10,000 in December, 2021.
He said: “If by December they (government) don’t take time to address this surge, it (12.5kg) will be N10,000. We (the marketers) are not the one causing this, rather it is the government. We sell what we get,” Essien told Economic Confidential.
On what causes the hike in price, Essien revealed that what the Nigeria LNG Limited (NLNG) is producing locally is “just about 40 per cent of the total consumption; the rest is imported. And you don’t have a forex window for these people to access to import gas.”
He berated Muhammadu Buhari’s government for causing the hike in prices of the cooking gas, adding that it was the government that brought back VAT on imported gas, which was removed several years back.
“You suddenly woke up and said you want to start imposing VAT on imported gas, which was removed several years back. And now, you didn’t even start it fresh, rather you said it is going to be in retrospect, starting from several months back,” he said.