Petroleum Product pricing Regulatory Authority (PPPRA) is planning to impose a fee of N2.5b per annum on LPG (Cooking Gas)
Already, Cooking gas sector is deregulated. Nigeria Liquefied Petroleum Gas Association (NLPGA) and NLNG Off-Takers Players are currently fighting a battle of their life to stave-off incursions by the PPPRA on their operations in order to avoid the distortions that have slowed down the growth of the PMS, AGO, DPK, ATK markets.
Gas appears to be a sane alternative for reducing cost in this era of deregulation when all other fuels are going up in the initial reactions to a free market.
With the PPPRA gradually losing a grip on its traditional space, it is now pursuing a control agenda in Cooking Gas space.
First, PPPRA has tried to take hold of Gas Terminals in Lagos with resistance over the last 3 years. But they are beginning to come in to the sector with control over Stockgap a new Gas Terminal in Port Harcourt.
If PPPRA were to establish their control as a price fixer in the Gas space, the total levies they intend to generate in the sector is put at about N2.5 Billion. And this may lead to price increases in the Cooking Gas space, so government needs to stop PPPRA from this needless incursion.