The Nigerian Independent Petroleum Company (NIPCO) on Monday asked the Federal Government to formulate a policy that would promote the use of Liquid Petroleum Gas (LPG) as cooking gas in the country.
Mr Venkataraman Venkatapathy, the Managing Director of NIPCO, made the appeal at the Nigerian Gas Association (NGA) 2012 First Quarter Business Forum in Lagos.
Venkatapathy said that the Nigerian market was large with high potential demand, yet to be tapped, adding that the LPG could substitute imported kerosene.
The Nigerian Independent Petroleum Company (NIPCO) on Monday asked the Federal Government to formulate a policy that would promote the use of Liquid Petroleum Gas (LPG) as cooking gas in the country.
Mr Venkataraman Venkatapathy, the Managing Director of NIPCO, made the appeal at the Nigerian Gas Association (NGA) 2012 First Quarter Business Forum in Lagos.
Venkatapathy said that the Nigerian market was large with high potential demand, yet to be tapped, adding that the LPG could substitute imported kerosene.
The managing director said that “this will save the nation foreign exchange to the tune of N200 billion ($1.25billion)''.
He, however, urged government to waive taxes, duties and levies on imported LPG kits.
“Government should waive VAT on domestic LPG sources; remove all forms of duties and levies on LPG imported kits, cylinders and accessories.
“ All levies like land tax, DPR Levies, and other government taxes be waived for setting up LPG kits and bottling plants in the country,’’ he said.
Venkatapathy said that Nigerians consumed 11 million litres of kerosene daily, saying that out of this, eight million litres were consumed by Nigerians who were under-privileged.
“The rural poor need an additional income of N800 million per day to meet their kerosene consumption needs.''
Venkatapathy said that for massive LPG growth programme, “government needs to approve capable public and private companies with the capacity to produce''.
He also said that the regulation of the LPG final price should be the responsibility of the government.
He said that if Government could encourage the use of LPG, it would reduce the huge foreign exchange spent on kerosene yearly and also prevent irregular supply of kerosene, which had always created hardship.
Venkatapathy said that most of the challenges confronting LPG consumption in Nigeria include: the decline in the demand of the product; roadside LPG cylinder to cylinder transfer; and lack of specific regulations.
He said that for homely use, the challenges included high cost of LPG to the common man.
He suggested that government should pass a legislation that LPG cylinders be marketed by approved big LPG marketing companies..
Mr Chima Ibeneche, the President of NGA, said the association had come a long way in its quest to contribute to the development of Nigerian gas industry''.
“I am delighted to state that NGA have been part of the evolution of a vibrant gas industry characterised by high energies in building consensus between the private and the public sectors in fashioning out Nigerian gas structural plan.’’
Ibeneche said “the task today and in the years to come is to ensure sufficient gas supply to industries and homes in Nigeria in line with the gas revolution declared by President Goodluck Jonathan.''
The theme of the forum is “domestic cooking gas supply and utilisation: challenges and opportunities’’.
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