• Tuesday, July 16, 2024
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BusinessDay

FG moves to make cooking gas cheap for Nigerians

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The Federal Government’s plan to launch cylinder project which would enable Nigerians buy cheap cylinders is aimed at increasing consumers’ accessibility to Liquefied Petroleum Gas (LPG) (cooking gas) at a cheap price. It holds that the start-up equipment for cooking gas users was among the reasons why LPG is limited to the rich and middle class in the country. An unconfirmed source told BusinessDay that the Federal Government is thinking of rolling out about 30 million cylinders which would be made available at a very cheap cost.

The current price of a cylinder is put at about N7,000 and it is said to be too high for an average consumer in Nigeria. The move by the government to flood the Nigerian market with cylinders which is perhaps the most costly element in the value chain of the product is aimed at systematically popularising the product and getting Nigerians to de-emphasis the use of kerosene. The plan of the government is to reduce the cost of getting the product through reduction of value added tax and removal of encumbrances that has made the product not accessible by average Nigerian.The latest indication that the government has finally woken up from its slumber as stakeholders over the years had called on the government to take active part in making Nigerians to key into the usage of LPG.

To demonstrate its seriousness in support for the use of the product, the government has ordered all companies marketing LPG to donate at least 100 cylinders as a demonstration of their support for the programme.A 13-member committee has also been inaugurated to see the success of the launching programme.some highly placed stakeholders in the industry confirmed to BusinessDay that the government has asked them to contribute 3,000 cylinders as a way of supporting the project. The Lagos Chamber of Commerce and Industry (LCCI) in its reaction said it would be a welcome development as LPG is a better fuel than kerosene. Muda Yusuf, the director-general of the LCCI, told Business Day that the LPG Group in the chamber is already partnering with the Lagos State government on the use of LPG.

He said, “The LPG is more environmental friendly and it would discourage the use of kerosene. Anything that would uplift the use of LPG the chamber would support. It is a worthy cause to support.” Another source that wants to remain anonymous said that a committee had been set up to encourage the switch from kerosene to LPG.He said that the plan was that at the point of launching of the cylinder scheme, President Goodluck Jonathan was expected to make a policy pronouncement on the use of LPG.