The Nigeria Liquefied Petroleum Gas Association has said that the high cost of importation of Liquefied Petroleum Gas (cooking gas) equipment is seriously affecting the industry and threatening its growth.
The NLPGA also said that if the situation persisted, the growth of the LPG market in the country could be hampered.
The President, NLPGA, Mr. Dayo Adeshina, therefore called for the reduction of the tariff on LPG equipment and accessories, maintaining that if left unchecked, millions of households and businesses would be affected by the situation.
He said, “Factors that continue to affect and hinder the growth of the industry include tariff on LPG equipment. These pieces of equipment are imported and the tariffs on them have increased tremendously. The local tools manufacturing company that used to give us some of these components is shut down and we are hoping for incentives from the government so that the tariffs won’t be high.
“For the first time, we saw the Federal Government making pronouncements through the Vice President, Prof. Yemi Osinbajo, on LPG. However, we were shocked when the list of tariffs came out and we didn’t see anything relating to LPG. This shows there is a disconnect somewhere and we hope that this will be addressed in the shortest possible time.”
Adeshina added that Nigerians were beginning to appreciate the benefits of LPG going by the large number of households now using the product for domestic purposes.
He explained that if fully tapped into, LPG had the capacity to promote a cleaner and safer environment.
He said, “With increased awareness, Nigerians are beginning to see the many benefits of LPG. It has other uses apart from the purpose of cooking alone. It is the cleanest fuel you can come across today.
“If government intervenes, we can shift from 500,000 tonnes per annum to two million tonnes per annum. So we need the support of government on tariffs and duties, including other critical areas to improve our capacity and deliver better services to Nigerians. We expect that by the third quarter of this year, decisions that will bring in investors would have been taken so that the industry can move forward.”