SMEDAN DG emphasizes the importance of financing SMEs – :::… The Tide News Online :::…

0

Amid psychological pain justified by the astronomical increase in liquefied petroleum gas, commonly known as cooking gas, the federal government says it is putting measures in place to ensure a further reduction in the cost of gas.
Program Manager, National LPG Expansion Implementation Plan, Office of Vice President Dayo Adeshina, revealed this in responding to the recent marginal decline in the cost of cooking gas.
According to the results, the price of 12.5 kg of LPG fell from 8,800 N to between 8,400 and 8,200 N. In some outlets, the price of the commodity fell between 7,800 and 8,000 N on Thursday.
In 2021, the cost of LPG continued to rise, jumping over 240% between January and October 2021.
The development has forced some LPG users to switch to charcoal or firewood, as consumers of the product have sounded the alarm about the continued rise in its price.
The product had increased 240% for 12.5 kg, from 3,000 N to 10,200 N in the first 10 months of 2021.
“It is in the government’s interest that the price drops steadily and certain initiatives are being taken right now which will hopefully lead to further price cuts regardless of the international cost,” the program official said, implementation of the national expansion of LPG. Plan says.
When asked to cite one of these initiatives, he said, “Discussions are still ongoing and there are some things you can do to stimulate the market that will have an effect. One of them is also about storage.
About 65% of LPG is imported into Nigeria, while domestic production accounts for 35%, hence the cost of the product in the world market affects the price locally.
Adeshina told reporters that the international price of LPG rose so high in October of last year, but fell towards the end of 2021 until January 2022, as this also contributed to the recent drop in the price of LPG. Across the country.
“If you look at the international price of LPG, that might change again because it’s not a fixed price. In January of last year, it was $ 250 a tonne.
“It went down to $ 875 a tonne at the end of October and started to decline from late November through December, and fell to around $ 500 a tonne at one point, but climbed back in December to $ 708 a tonne.
“Now, as of January 3 of this year, that figure is $ 744 a tonne. So you can see that there is a drop from around $ 800 around November to $ 700 in January. The problem here is that the price has fluctuated.
“Yes, you have the effects of customs and the position of VAT that required people to pay taxes on what they imported even in 2019 and 2020. Of course, some importers have stopped importing, but there is an ongoing resolution to resolve this aspect, ”he said.
Adeshina assured Nigerians that the government would come up with additional measures that would further reduce cooking gas prices, regardless of price fluctuations in the world market.

Share.

About Author

Comments are closed.