NLPGA kicks against moves by PPPRA to impose administrative levy on LPG operators

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The Nigeria Liquefied Petroleum Gas Association (NLPGA) has kicked against moves by the Petroleum Products Pricing Regulatory Agency (PPPRA) to impose administrative levy on Liquefied Petroleum Gas operators.

This is despite the deregulation of the LPG sector. In protest, the association has asked  its members to ignore PPPRA directive.

NLPGA stated: “It has come to the attention of the Executive Committee that the PPPRA has continued to circulate directive to levy administrative fee on LPG despite the product being deregulated.

“Since the initial pronouncement late last month, the Association published a press release to debunk and robustly rebuff any attempt by PPPRA to implement any charge on LPG as PPPRA has no administrative role in a deregulated market.

“We have also escalated this and other challenges with government regulatory agencies to the Presidency with promises to intervene swiftly. “You are by this mail, urged to ignore and do not comply with the proposed directive.”

In its recent statement, NLPGA, had stated: “Nigeria’s LPG industry is arguably the fastest growing sector in Africa, a feat attributable to the tireless and concerted efforts of the private sector over the last decade.

“It is noteworthy, that in spite of fluctuating foreign exchange rates and a COVID-19 battered economy, the stakeholders have managed to stabilise the general affordability of the product in order not to overwhelm an already pauperised population.

“This feat of maintaining price stability at huge cost to operators amidst massive investment in infrastructure has been made possible because of LPG being a fully deregulated product.

“Equally exciting are several measures in order to further catalyse sectoral growth through such actions as: the waiver on VAT on LPG and LPG equipment; waiver on import duty on importation of LPG quipment; and, quite recently, the various strategic consultations to deepen gas utilisation by strengthening Autogas (LPG/CNG/LNG), Gas to Power applications and initiatives.

“In fact, the declaration of 2020 as the “Year of Gas” by the Minister of State for Petroleum Resources was an added impetus to the drive to achieve gas expansion.”

However, NLPGA added: “We will, however, continue to explore all avenues to seek redress, promote ease of doing business and advocate for the better mutually beneficial business, public health safety and environment for all.”

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