Subsidy on kerosene should be stopped – NLPGA

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The Nigeria Liquefied Petroleum Gas Association (NLPGA) on Monday advised the Federal Government to stop what it called the “kerosene subsidy racket”. The association alleged that the subsidy racket had gulped over N1.7 trillion in six years. Dayo Adesina, the President of the association, told newsmen in Lagos that the amount being used by government to subsidise kerosene could be used to encourage the use of cooking gas.

He alleged that part of the money earmarked for kerosene subsidy were being diverted by government officials, adding that this was the reason the products remained scarce.

Accordingly to him, government is setting aside huge sums as kerosene subsidy which has not impacted positively on Nigerians.” Some few government officials are diverting the kerosene subsidy instead of using it for the purpose.

“Government should invest on LPG than kerosene to help the common people because its cheaper, cleaner and neater,” he said. Adeshina said that the use of cooking gas should be encouraged in Nigeria. He said that subsidy on kerosene should be stopped, while government should encourage Nigerians to use cooking gas. Adesina re-affirmed the continued willingness of his group to support Federal Government’s actions to encourage the usage of cooking gas nationwide.

He said that the association would continue to encourage more investments in LPG beyond the current level. Mr Nuhu Yakubu, the Deputy President of the association, expressed dissatisfaction with the low level of usage of cooking gas in the country. According to him, Nigeria has the lowest per capita consumption of cooking gas in Sub-Sahara Africa. “Nigeria is the second largest producer of LPG in Africa and the sixth largest producer in the world.

“We produce over four million tonnes of LPG per annum and have the capacity to consume as much,” he said. “In addition, we flare an additional 1-2 million tonnes of LPG inland. “Ironically, Nigeria also has the lowest per capita consumption of LPG in sub-Sahara Africa at 0.8kg per annum. “Consumption in 2014 was 350, 000 tonnes,” Yakubu said.

The seventh House of Representatives alleged that NNPC claimed it paid N1.7 trillion to major importers of kerosene between 2009 and 2014. The government also budgeted over N45 billion to subsidise the product in the 2015 budget.

Source: Vanguard