The Federal Government has implemented a 7.5 per cent tax on imported Liquefied Petroleum Gas, popularly called cooking gas, as the cost of the commodity leapt by over 100 per cent within a period of eight months.
It was learnt on Sunday that the government implemented the VAT on LPG imports about three weeks ago and some dealers were also compelled to pay the tax for commodities imported several months ago.
Operators told The Vent Republic that Nigeria imports about 70 per cent of cooking gas, while the rest was mainly supplied by the Nigeria Liquefied Natural Gas company.
It was also gathered that the cost of a 12.5kg of cooking gas that sold for about N3,500 in December 2020 had jumped to as high as N6,800 in parts of Abuja.
The National Chairman, Liquefied Petroleum Gas Retailers Association of Nigeria, Michael Umudu, said there were three factors that caused the surge in price.