The Federal Government has implemented a 7.5 per cent importation Tax on Liquefied Petroleum Gas popularly known as cooking gas.
The information on the implementation was gathered on Sunday, as it revealed that the VAT was implemented three weeks ago and some dealers were also mandated to pay the tax for commodities imported several months ago.
Operators said Nigeria imports about 70 per cent of the commodity while 30 per cent was mainly supplied by the Nigeria Liquefied Natural Gas company.
The National Chairman, Liquefied Petroleum Gas Retailers Association of Nigeria, Michael Umudu stated that there were three reasons that caused the surge in price.
Umudu said, “There are three major factors to the hike in prices. Firstly, about 70 per cent of the gas we consume in Nigeria is imported and importers have to contend with the high cost of foreign exchange.
“Secondly, there is a rise in the price of petroleum products in the international market and because of that, the cost of LPG has equally gone up. So importers now pay more on imports.
“And thirdly, the government added VAT on imported LPG about three weeks ago. It (VAT) was 7.5 per cent of the cost of the commodity and this exacerbated the price hike of cooking gas in the past three weeks.”