Reduce Import Duty On LPG Equipment, Marketers Tell FG


The Nigerian Association of Liquefied Petroleum Gas Marketers, has urged the Federal Government to reduce import duty on LPG equipment and accessories.
NALPGAM made the appeal while commending the government for the removal of Value Added Tax on locally produced LPG, also known as cooking gas.
The President of the association, Mr Nosa Ogieva-Okunbor, said: “The clamour for VAT removal from domestically produced Liquefied Petroleum Gas has been of perennial concern to members of our association.
“The good news received by our association and the LPG industry is that the Federal Government has finally signed the approval of VAT removal on LPG and gazetted same which makes it an official pronouncement.”
Ogieva-Okunbor, on behalf of the governing council and members of the association, thanked the Federal Government and all relevant government agencies for listening to their plea.
“We also want to use this opportunity to thank and appreciate the Department of Petroleum Resources for the timely directive stopping the inappropriate and indiscriminate installation of Skid plants in petrol stations,” he said.
According to him, the directive that all skid plants in filling stations be dismantled and removed was apt, considering the huge danger and risk to the public in the operations of LPG skid plants in filling stations.
Ogieva-Okunbor said: “We, however, appeal for proper and thorough implementation of the directive in all the states of the federation.
“The association still pleads with the government to create a more conducive and enabling environment for investors in the industry, particularly now that deepening the consumption of LPG in the country has become a major interest of the government and marketers are geared towards ensuring the success of the programme by complementing the efforts of the government.”
He said the increased awareness of LPG usage had seen consumption in Nigeria grow from 50,000 metric tonnes in 2007 to over 600,000MT in 2018 with more indigenous investments in LPG bottling plants.
“This thus will ensure that majority of Nigerians enjoy the convenience of the proximity of LPG refill or exchange points. We implore the federal and state governments to initiate a well-funded social welfare programme to expand usage of LPG,” Ogieva-Okunbor added.
The National Bureau of Statistics, in its LPG Price Watch for April, said the average price for the refilling of a 5kg cylinder for LPG decreased by 0.87 per cent month-on-month and 0.57 per cent year-on-year to N2, 046.53 in April from N2, 064.45 in March.