Cooking gas price up 100% as VAT on LPG import begins
More Nigerians may soon resort to the use of firewood for cooking as prices of Liquefied Petroleum Gas (LPG) hits the rooftops due to the Federal Government implementation of a 7.5 per cent Value Added Tax (VAT) policy on imported cooking gas.
Survey of cooking gas prices by Global Finance Digest showed that the commodity has jumped by more than 100 percent since December 2020 across the nation.
According to the Survey, despite the presence of the Nigeria Liquefied Gas company (NLNG), which largely produces natural gas and Liquefied gas, Nigeria imports around 70 per cent of LPG for domestic use, with the balance of about 30 per cent sourced locally by dealers.
Industry sources said the government began the implementation of the 7.5 per cent VAT on LPG imports about three weeks ago while some dealers were also mandated to pay the tax for commodities imported several months ago.
Global Finance Digest said the price of 12.5 kg cooking gas which sold at around N3,500 eight months ago is now going for N6,500 in Lagos and Ogun states.