Despite Tinubu's Zero Tariffs on Cooking Gas Imports, Marketers Warn of Persistent High Prices
- Despite the removal of importation tariffs on cooking gas, the price has yet to show a significant reduction
- President Tinubu had directed the removal of import duties on cooking gas and Compressed Natural Gas (CNG) as incentives for their adoption
- Marketers of the product have spotlighted other minor costs that contribute to the overall expense of gas
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
The President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALGAM), Oladapo Olatunbosun, has stated that eliminating import duties on cooking gas materials would not immediately lower prices.
He explained that prices remain on the rise due to additional minor costs that contribute to the overall expense of gas.
Source: UGC
Why cooking gas prices are yet to drop
Olatunbosun's comment follows the Nigeria Customs Service's (NCS) implementation of the removal of import duties on cooking gas and all imported equipment and spare parts associated with Compressed Natural Gas (CNG) as incentives for their adoption.
He said that although the government has waived import duties on gas and related equipment, gas prices remain high due to other contributing expenses.
He said:
“This policy is not new. It is true that the government said we should not pay duty on gas and some gas equipment but the situation we have now is that the price of gas is still on the high side. Yes they have started implementing that but that does not mean there are no other expenses. The expected effect is that gas prices should reduce drastically but the prices have not gone down significantly.”
According to DailyTrust, Olatunbosun added that the implementation of the policy must be well monitored for the removal of gas duty to translate to lower prices.
The federal government had previously decided to lower the cost of cooking gas, which has become increasingly expensive and out of reach for many households.
Recall that in October this year, the federal government halted the export of locally produced cooking gas to prioritise domestic supply over exports to alleviate the burden of rising costs on Nigerian consumers.
These incentives were introduced to alleviate living expenses and support Nigeria's shift toward cleaner energy sources.
Speaking to Legit.ng, Wale Ogundeji, an energy analyst, said the skyrocketing price of cooking gas in Nigeria is a heavy burden on households already grappling with inflation.
He said:
"Many families are forced to revert to unsafe alternatives like firewood, posing health and environmental risks. It’s high time the government addressed the underlying issues, such as import dependency and poor infrastructure, to stabilize prices."
He added that encouraging local production and removing bottlenecks in the supply chain are critical steps toward affordability and ensuring that clean energy remains accessible to all Nigerians.
FG begins clampdown on illegal gas retailers
Meanwhile, Legit.ng earlier reported that the Nigerian Upstreams and Downstream Petroleum Regulatory Authority (NMDPRA) began clamping down on illegal cooking gas retailers in parts of the country.
The authority’s coordinator, Ikechukwu Eseka, stated this during a visit to the NSCDC Commandant in Eket, Cross River State.
The NMDPRA frowned at the activities of resellers, saying that they endanger consumers’ lives.
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Source: Legit.ng
