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Monday, September 20, 2021

VAT War: Nigerians blame states, FG tussle for hike in gas price

A 12.5 kg cylinder which sold for N4,500 before July, now sells for between N6,500 and N7,000.

• September 20, 2021

The manager of Libgon Gas Plant in Jos, Isaac Martin, has attributed the hike in gas prices in Plateau to the importation of gas and the ongoing tussle between states and the federal government on who owns the right to collect VAT.

“Remember gas is refined and imported, and the high import duty and exchange rate have triggered the price of the product,” Mr Martin said.

A 12.5 kg cylinder which sold for N4,500 before July, now sells for between N6,500 and N7,000.

Some residents of Plateau said on Monday that the price increase had inflicted hardship on the people.

A teacher, Philomena John, who lamented the hike, said it had compelled consumers to seek alternatives in charcoal and firewood.

She said Nigerians should not be spending so much to get cooking gas since the country has an abundance of gas resources.

“The price keeps rising daily. You can imagine six kilogrammes that sold for between N900 to N1,200 now goes for N2,800.

“How can an average Nigerian balance it considering the rise in prices of foodstuffs in the market?” she queried, calling on the government to reduce it or have a fixed price.

Stephen Nyam, a baker, said the price hike had affected his business negatively.

He said the increased price of gas led to the recent increase in the prices of bread, pastries, confectioneries and other baking products.

“Before now, we refilled 12.5 kg for N4,500, but now the price of refilling the same cylinder has gone up to N6,500.

“This is not good for us who are into the baking business because it ha slowed our productivity level and by extension our profits.

“If the government is serious about job creation, it must consider a downward review of prices of some key commodities because it has a great ripple effect on the citizens and even on the economy in general,” he said.

Another person, Noel Dashe, attributed the hike in the price of gas to high demand.

He added that the inability of the government to ensure proper price control had enabled black marketers to take advantage of the situation.

“Looking at the economy of the country at this present time, it is not a surprise to see a hike in the price of any commodity.

“Government should regulate the price of gas and ensure regular supervision of gas plants to ensure that Nigerians get it at the approved price,” he advised.

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