The Federal Government has promised to take necessary steps to bring down the cost of cooking gas across the country as it is worried about the situation.

This is as the government has said that it needs N6 billion for the procurement of kits to convert the first one million cars as well as facilitate the procurement of equipment that will enable gas pump stations to come on board in its move to ensure the transition of cars from the use of petrol to gas.

This disclosure was made by the Minister of State for Petroleum, Timipre Sylva, while speaking to state house correspondents, after the official presentation of the 2 newly appointed Chief Executive Officers of newly created agencies under his ministry on Tuesday in Abuja.

What the Minister of State for Petroleum is saying

Sylva, who was in the company of the CEO of the Midstream Petroleum Regulatory Authority, Farouk Ahmed and CEO of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, said that the President is worried over the rising cost of cooking gas just like other Nigerians.

According to NAN, Sylva said that although the price of the essential commodity is not regulated by Nigeria, some steps would be taken internally to provide some relief, ahead of the yuletide season.

The Minister in his statement said, “We must understand that cooking gas is not subsidized. It is already a deregulated commodity so the price is not determined by the government or anybody here in Nigeria. In fact, gas prices are determined internationally.

“The price of gas internationally now affects the price of gas in our country.

“But there are some issues around Value Added Tax (VAT) charges and other taxes on imported gas, which we are handling.

“But, I want to assure you that we are quite concerned and the President also is very concerned; he is aware that the price of gas is high in the market and we are doing everything to see how we can bring down the price of gas, especially as the yuletide approaches.’’

What you should know

Recall that marketers of Liquefied Petroleum Gas, otherwise known as cooking gas, had expressed concerns over the rising cost of the product warning that it might increase to N10, 000 before December if the current crisis in the sector is not addressed.
The marketers had maintained that the Federal Government should review the recently introduced Value Added Tax (VAT) and import charges or else the price of cooking gas will keep rising.
Also in September, oil marketers under the aegis of Major Oil Marketers Association of Nigeria (MOMAN), protested the Federal Government’s reintroduction of Value Added Tax (VAT) on imported LPG.
They argued that the introduction of VAT to the already high price of gas which is largely imported due to the global gas crisis will negate the government’s policy on the adoption of LPG.
The association, which is a major stakeholder in the downstream sector of the oil industry asked the Federal Government to rescind its decision by removing the 7.5% VAT on the product. Warning that the fee will hamper the adoption of gas in the country and create a barrier to the objectives of the ‘Decade of Gas’ agenda of the Government.