Emmanuel Addeh in Abuja
All efforts by the federal authorities to tame the skyrocketing costs of Liquefied Petroleum Gasoline (LPG), in any other case generally known as cooking fuel have didn’t affect the speed the product is offered within the open market, with a 5kg cylinder promoting for a median of N5,139.25 in January.
The newest information from the Nationwide Bureau of Statistics (NBS) confirmed that on a year-on-year foundation, the value Nigerians purchase LPG elevated by 12 per cent from N4,588.75 in January 2023.
Nevertheless, the final survey figures launched by the NBS might have been out of date now, THISDAY learnt, with the costs additional rising considerably in February.
The worth of a 5kg cylinder, THISDAY checks confirmed, now sells for as a lot as N6,500 or extra in a number of components of the nation, with one kilogramme hitting N1,300 and above in current instances.
In the identical vein, a 12.5kg now goes for as excessive as N16,250, 25kg goes for N32,500 and 50kg sells for N65,000, though there might minor fluctuation in costs, relying on the place the product is purchased.
In November final yr, the federal authorities introduced the exemption of imported LPG and its associated gear from the cost of customs obligation and seven.5 per cent Worth Added Tax (VAT) to crash the rising costs.
Particularly, within the round from the ministry of finance, dated November 28, 2023, signed by the pinnacle of the ministry, Wale Edun, it mentioned the exemption aligned with President Bola Tinubu’s dedication to rising the availability of LPG to fulfill native demand, lowering market costs and selling clear cooking apply.
However since then, moderately than scale back, the costs have gone even greater, placing already financially pressed Nigerians below much more intense strain.
Additionally, penultimate week, the Minister of Petroleum Assets (Gasoline), Mr Ekperikpe Ekpo, mentioned the federal authorities was contemplating halting the export of cooking fuel, to decelerate the escalating costs of the product.
Talking on the sidelines of an inner fuel stakeholders’ workshop in Abuja, the minister mentioned that authorities was deeply involved concerning the rising charges out there.
Ekpo acknowledged that severe conferences had been ongoing on the matter, together with the present apply of promoting fuel in {dollars}, which has impacted costs, stating that Nigerians will start to see modifications quickly.
“On the problem of LPG, we’re interacting with the crucial sectors to make sure that there is no such thing as a exportation of LPG. All LPG produced inside the nation must be domesticated,” he mentioned.
When THISDAY requested why the removing of the 7.5 per cent VAT didn’t affect the market, Ekpo mentioned: “It isn’t going to mirror that method. We’re coping with human beings. We now have made a coverage. And these folks, the traders, they wish to maximise the revenue that they’re going to get from it.
“However on the finish of the day, we’ve got to come back in. That’s the reason you could have the regulator; we’re interfacing with them to verify they crash the value. We’re assembly with them each day”.
Nevertheless, the newest NBS information on cooking fuel costs overlaying January mentioned the typical retail value for refilling a 5kg cylinder of fuel elevated by 3.55 per cent on a month-on-month foundation from N4,962.87 recorded in December 2023 to N5,139.25 in January 2024.
“On a year-on-year foundation, this elevated by 12 per cent from N4,588.75 in January 2023. On state profile evaluation, Nassarawa recorded the very best common value for refilling a 5kg cylinder with N5,790.00, adopted by Jigawa with N5,681.82, and Gombe with N5,660.00.
“Then again, Kaduna recorded the bottom value with N4,150.00, adopted by Ogun and Osun with N4,751.04 and N4,763.53 respectively.
“As well as, evaluation by zone confirmed that the North-east recorded the very best common retail value for refilling a 5kg cylinder with N5,296.32, adopted by the North-Central with N5,240.36, whereas the South-west recorded the bottom with N4,805.05” it famous.
Additionally, the NBS information confirmed that the typical retail value for refilling a 12.5kg elevated by 1.96 per cent on a month-on-month foundation from N11,510.16 in December 2023 to N11,735.72 in January 2024. On a year-on -year foundation, this rose by 14.19 per cent from N10,277.17 in January 2023.
“On state profile evaluation, Cross River recorded the very best common retail value for the refilling of a 12.5kg with N13,040.00, adopted by Jigawa with N12,875.00 and Zamfara with N12,725.00.
“Conversely, the bottom common value was recorded in Kaduna with N9,699.50, adopted by Kwara and Niger with N10,000.00 and N10,400.00 respectively.
“Evaluation by zone confirmed that the South-south recorded the very best common retail value for refilling a 12.5kg with N12,602.47, adopted by the North-west with N12,224.93, whereas the South-west recorded the bottom value with N11,189.02,” the information confirmed.
Nigeria has over 208 Trillion Cubic Toes (TCF) of confirmed fuel reserves, concerning the 9th on the planet, however is unable to get it out of the bottom because of low funding within the sector, additional exacerbated by pricing points in addition to vandalism.
As well as, the nation has over 600 Trillion Cubic Toes of potential fuel reserves, which might final the nation lots of of years, even when optimally harnessed.
