The federal government on Tuesday said that it has no control over the price of cooking gas because the product is fully deregulated in the country.
The minister of state for petroleum resources, Timipre Sylva, who made the declaration in a chat with correspondents however noted that President Muhammadu Buhari is worried about the hike in the price of the commodity.
The minister was at the presidential villa, Abuja to introduce to the president the CEO, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA,
Engr. Faruk Ahmed and the CEO, Nigerian Upstream Petroleum Regulatory Commission NUPRC, Engr. Gbenga Komolafe
He asserted that gas prices are determined by the global market, even though he indicated that government will everything possible to bring down the price especially during the Yuletide season.
He said, “We must understand that cooking gas is not subsidized. It is already a deregulated commodity. So the price of cooking gas is not determined by the government or by everybody in the industry. In fact, gas prices are determined internationally.
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“And you all are aware that in Europe, today, gas prices have gone up. There was even a crisis in Europe relating to gas prices. So the pricing of gas internationally now affects also the price of gas in the country.
“Apart from that, there are some issues around VAT charges on imported gas, and of course, taxes on imported gas, which we are handling. But of course, quite frankly, these taxes on imported gas, you must also juxtapose it side by side with the local producers of gas.
