The Federal Government has stated that efforts are being made to normalise the increasing price of cooking gas across the country.
Speaking after a meeting with President Buhari at the Presidential Villa on Tuesday, Minister of State for Petroleum Resources, Timipre Sylva, explained that the FG has no control over the price of cooking gas because it is being determined by the global markets, just like the price of crude oil.
He, however, noted that the president was concerned about the increasing price of cooking gas, as he assured that efforts were being made to reduce the cost before the Yuletide season.
“We must understand that cooking gas is not subsidised. It is already a deregulated commodity. So the price of cooking gas is not determined by the government or by everybody in the industry. In fact, gas prices are determined internationally.
“And you all are aware that in Europe, today, gas prices have gone up, there was even crisis in Europe relating to gas prices. So the pricing of gas internationally now affects also the price of gas in the country.
“Apart from that, there are some issues around VAT charges on imported gas, and of course, taxes on imported gas, which we are handling. But of course, quite frankly, these taxes on imported gas, you must also juxtapose it side by side with the local producers of gas.
“So if you incentivise the importance too much, then you will also kill the local industry. And also, you don’t want to incentivise the local industry at the expense of the imports, because if incentivise the local industry at the expense of the imports, then you will not have enough gas produced within the country.
“So, these are the issues of balancing that the midstream and downstream regulatory authority are handling, and I want to assure you that we are quite concerned. Mr President also is very concerned. He is aware that the price of gas is high in the market, and we’re doing everything trying to see how we can bring down the price of gas, especially as we approached the yuletide.”
Sylva, at the meeting, presented the Chief Executive Officers of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Faruk Ahmed and Gbenga Komolafe of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to President Buhari.
