JUST IN: Cooking Gas Crashes to Lowest in Four Months as FG Takes Action on VAT, Import Duties - Reportgist

JUST IN: Cooking Gas Crashes to Lowest in Four Months as FG Takes Action on VAT, Import Duties

Reportgist
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Cooking gas dealers have crashed the commodity’s price to a four-month lowDealers attributed the change to the government’s intervention, such as free cylinder distribution and import duty removalThe first time the commodity crashed lower, the current price was early in the year when it sold for about N700 per kg>>>CONTINUE FULL READING HERE

EllaNews’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade

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A survey by EllaNews reveals that the price of liquified petroleum gas (LPG), also known as cooking gas, has plummeted to a four-month low.

Dealers of the commodity quoted the product price low, attributing it to various interventions by the Nigerian government.

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Cooking gas sells for new price as FG intervenes

EllaNews previously reported that the Nigerian government removed Value Added Tax (VAT) and import duty on LPG to boost local supplies.

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Also, the government began the free distribution of one million unrestrained LPG cylinders nationwide to enhance access.

Findings by EllaNews show that dealers across Nigeria have crashed the cooking gas price below N900 per kilogramme for the first time in four months.

The first time cooking gas was sold below N800 was early in 2024, when dealers announced a price reduction after it hit N1,300 per kilogramme.

Dealers laud FG’s interventions

According to dealers, the crash is attributable to the naira’s relative stability in the official market and improved supplies.

A manager at Gasland, one of the major LPG marketers, disclosed that the commodity’s price fell due to government interventions, improved access to forex for import, and the stability of the naira.

“Dealers are now accessing forex relatively easily in the official market, making import easy. Also, the government has removed some bottlenecks such as VAT and import duties.”

The manager, who spoke anonymously, said the government need to sustain its interventions in the sector to ensure that more Nigerians use cooking gas.

“Recently, the government began the distribution of unrestrained gas cylinders to Nigerians to enhance access to LPG use. The action is commendable because no one with a cylinder will leave it idle.

“Also, the government needs to provide some interventions to marketers to allow them to import more of the product, which will lead to a price crash,” he said.

Dealers sell cooking gas at new cost after three-week price crash

EllaNews reported that despite repeated attempts by the Nigerian government to crash cooking gas prices, dealers have reported a hike in the cost of the commodity, citing foreign exchange challenges as the reason.

The dealers say the addition is due to the crash of the naira against the US dollar.

CBN abandons Price Verification Portal, Form M for Cargo clearance, gives reasons>>>CONTINUE FULL READING HERE

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