Nigerians may witness a surge in spending on liquefied petroleum gas (LPG) exceeding N1.5 trillion in 2024 due to escalating commodity prices, placing additional strain on household incomes. Despite incentives like customs duty and value-added tax (VAT) waivers on LPG, rising prices and the return to charcoal by millions cast doubt on the success of the country’s cleaner fuel initiative.<\/p>\n
The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) reveals the country’s annual LPG consumption at 1.4 million metric tonnes, equivalent to 1.4 billion kilograms. At the current average price of N1,100 per kilogram, consumers are set to spend N1.5 trillion yearly, amid rising poverty and unemployment.<\/p>\n
While the removal of VAT may lead to the forfeiture of approximately N10.5 billion in government revenue, challenges such as the foreign exchange crisis and high diesel costs could limit the impact of these waivers. Marketers attribute the surge in LPG costs to factors like the foreign exchange crisis, inflation, supply infrastructure challenges, and high diesel prices.<\/p>\n
The Ministry of Finance’s recent letter dated November 28, 2023, outlines President Bola Tinubu’s government’s move to bring down cooking gas prices. The removal of VAT and customs duty on LPG imports is expected to contribute to lower retail prices. However, concerns persist about the need to boost local gas processing to address the ongoing price increases.<\/p>\n
Experts, while acknowledging the positive impact of these waivers on retail prices, emphasize the importance of promoting local LPG production. They argue that locally produced LPG is preferable to reduce dependence on imports and address the challenges associated with foreign exchange and logistics. The government’s move aims to provide temporary relief for consumers amid inflation and economic challenges, aligning with President Tinubu’s commitment to public welfare.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nigerians may witness a surge in spending on liquefied petroleum gas (LPG) exceeding N1.5 trillion in 2024 due to escalating commodity prices, placing additional strain on household incomes. Despite incentives like customs duty and value-added tax (VAT) waivers on LPG, rising prices and the return to charcoal by millions cast doubt on the success of […]<\/p>\n","protected":false},"author":14,"featured_media":12065,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[],"class_list":["post-12063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/12063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=12063"}],"version-history":[{"count":2,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/12063\/revisions"}],"predecessor-version":[{"id":12076,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/12063\/revisions\/12076"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/12065"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=12063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=12063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=12063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}