Chairman of Major Oil Marketers Association of Nigeria (MOMAN), Olumide Adeosun, has attributed the rising cost of Liquefied Petroleum Gas (LPG), also known as cooking gas in the domestic market to insufficient production of the commodity by the country.
The price of cooking gas has increased from between N384 and N400 per kg to between N520 and N560 in different parts of the country, over the last few months.
Speaking with journalists, Adeosun who recently emerged leader of the association, said major operators in the downstream sector will pursue a new agenda that aligns with the development and utilisation of LPG under the Petroleum Industry Act (PIA) regime as well as in line with the transition goal.
He also pointed out that the imposition of Value Added Tax (VAT) on imported LPG will hamper the adoption of the fuel in the country.
“Domestically, what can we do? I think there have been discussions around the VAT that has been levied on the product,” he said.
He noted that the world is changing rapidly and the oil and gas industry has been proven to be one of the most exposed to the winds of change and that the period of restrained movements occasioned by the COVID-19 pandemic, has seen much of the world accelerate their drive towards zero or near zero utilisation of hydrocarbon-based energy sources, a clear indication that the days of hydrocarbons might be fewer than projected.
Adeosun, who is also the CEO of Ardova Plc, commended the federal government’s push to increase nationwide usage of gas, saying it is an initiative that should be supported and taken advantage of.
