NALPGAM wants FG to remove VAT on LPG

The President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Mr. Nosa Ogieva-Okunbor, has called on the Federal Government to remove the Value Added Tax on Liquefied Petroleum Gas, popularly known as cooking gas.

Ogieva-Okunbor, who made the call during a courtesy visit to Nipco Plc, also stressed the need to reduce the import duty on LPG equipment in a bid to encourage more investors to come in and deepen LPG consumption in the country.

He said it was a shame that the country remained one of the lowest consumers of LPG despite the enormous natural gas reserves.

He said, “Our position is that the Federal Government has to provide enabling environment for more people to come in. We have to remove VAT on the LPG and reduce import duties on the equipment.

“We are appealing to the government to remove VAT if we really want to deepen the LPG consumption. The import duty should be drastically reduced. When this is done, more investors will come into the market massively and that will help the country a great deal.”

Ogieva-Okunbor said Nipco’s entry into the LPG market in 2009 had broken the monopoly being enjoyed by International Oil Companies through their affiliate companies in Nigeria.

Commenting on the purpose of the visit, he said, “A new governing council of our association came on board, and we deemed it necessary to visit some of the key stakeholders in the industry and Nipco is one of them. We also congratulate them for the initiative they took in expanding their facility, which will greatly assist in boosting the penetration of LPG in the country.”

According to him, the company’s expansion project will have a positive impact on storage and availability of LPG in the domestic market.

Ogieva-Okunbor informed the Nipco management of the setting up of a human resource development centre by the association to grow technical know-how in the industry and offer avenue for exchange of ideas in the interest of the stakeholders.

While promising increased business relationship on behalf of its members, who own hundreds of bottling plants across the country, he said, “the partnership of NALPGAM and Nipco is key to the smooth transition of gas to the end users”

On his part, the Managing Director, Nipco, Mr. Sanjay Teotia, said, “The ongoing expansion in our LPG plant is geared at improving the gas distribution value chain by providing veritable avenue for storage and dispensing to bottling plants owners and other ancillary operators in the LPG market.”

He said the company remained committed to high safety standards and accurate loadings.

Teotia added, “Nipco will cooperate with the association in ensuring that its gas prices are affordable and poised to increase avenue for more meaningful business for marketers even as he urged NALPGAM to ensure that bottling plant owners consider the end users in pricing as well as accuracy in quantity dispense.”

NALPGAM presented Nipco with the award of the 2017 Best LPG Marketer and the company’s Head of LPG Sales, Harjeet Tuteja, was recognised as the best salesman of the year.

Source: Punch Newspaper (

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