The Federal Government has claimed that the price of cooking gas like crude oil price was being determined by global markets hence it has no control over it.
The Minister of State for Petroleum Resources, Timipre Sylva made this claim when he spoke to State House Correspondents at the Presidential Villa, Abuja, after a meeting with President Muhammadu Buhari, where he formally presented the CEO, Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA), Faruk Ahmed and the CEO, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe.
According to Sylva, the President was equally concerned about the rising price of cooking gas.
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Asked what was responsible for the hike in the price of cooking gas and what government was doing to address the situation, Sylva said that the government has no control over the price increase hence cannot subsidize the product as it was fully deregulated
He said, ‘We must understand that cooking gas is not subsidized. It is already a deregulated commodity. So the price of cooking gas is not determined by 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 incentivize the importance too much, then you will also kill the local industry. And also, you don’t want to incentivize the local industry at the expense of the imports, because if incentivize 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.’
President Buhari has also directed the Minister of State for Petroleum Resources, to proceed to Nembe, Bayelsa state to investigate the level of damage by the recent oil spillage in the area.
AFRICA TODAY NEWS, NEW YORK