Nigerians have been complaining about the recent hike in the price of cooking gas in the country, but the reason why gas price has been skyrocketing will be revealed below.
Earlier today, one of the most leading gas suppliers in Nigeria, Eco gas Energy Resources Limited, Chief Executive Officer, Chief Shina Luwoye, stated the real reason why gas price has been skyrocketing over the past few months.
He stated that the main cause was the 7.5 percent Value Added Tax, which was introduced recently on the importation of gas, and he also revealed that the current devaluation of Naira compared to the dollar, has also been affecting the spikes in the Liquefied Petroleum Gas prices.
Mr. Luwoye said that approximately 60% of the Liquefied Petroleum Gas being used in Nigeria was always imported from abroad, the cost of purchasing Liquefied Petroleum Gas has become high, that we have to sell it at that price to hardly make a gain.
He also commended the Federal Government’s efforts to adopt of deepening of gas, but the current hike in price has been a major setback.
“LPG is a commodity that is highly needed, people are adapted to the use of LPG, and the population of people that have been demanding has gone so high, but unfortunately the current hike and inflation in Nigeria, which is also affecting other sectors, has reduced the demand for LPG by 40 ℅.