FG Moves to Crash Diesel, CNG, Cooking Gas Prices, Removes Key Taxes on Products
- The Nigerian government has taken steps to crash the prices of essential energy prices nationwide
- The minister of Finance, Wale Edun, announced the removal of VAT from cooking gas, diesel, CNG, and electric vehicles
- The government disclosed that the move is to promote cleaner energy and provide energy security for Nigerians
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government has announced the removal of Value Added Taxes (VAT) for different energy products, including cooking gas, diesel, and compressed natural gas (CNG).
The development is contained in a statement by the Minister of Finance, Wale Edun, on Wednesday, October 2, 2024.
Source: Getty Images
FG’s move is to reduce the cost of living
The minister disclosed that the measures aim to reduce the cost of living, boost energy security, and accelerate Nigeria’s shift to cleaner energy.
Daily Independent reported that the government also introduced Notice Tax Incentives for Deep Offshore Oil and Gas Production, providing new tax reliefs for deep offshore projects.
According to the statement, the VAT Modification Order 2024 introduces exemptions on critical products and infrastructure such as diesel, feed gas, LPG, CNG, LNG, electric vehicles, and clean cooking equipment.
According to the statement, the initiative aims to position Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.
Cooking gas prices rise to a new high
Many Nigerians have welcomed the new development as novel and a means to end the ongoing hike in energy prices, especially cooking gas and diesel, which large companies and most households use.
Nigerian states with the highest prices
Monthly, the price of cooking gas rose by 7.62% from N5.874.55 recorded in July 2024 to N6,430 in August 2024.
According to the NBS report, Benue and Sokoto recorded the highest average price for refilling a 5kg cooking gas cylinder at N7,000, followed by Rivers at N6,954.55 and Borno at N6,914.29.
In Contrast, Taraba recorded the lowest price of cooking gas at N5,600.67, followed by Abuja and Kogi at N5,825 and N5,857.56, respectively.
On state analysis, Rivers recorded the highest average retail price for refilling a 12.5kG cooking gas cylinder: N17,086.36. It was followed by Cross River, with N17,050,00, and Abia, with N17,086.36. Nasarawa and Adamawa followed with N13,640.94 and N13,725.00, respectively.
The price of refilling 12.5kg, 6kg, and 5kg cooking changed recently.
New diesel prices emerge at filling stations
Legit.ng previously reported that the National Bureau of Statistics (NBS) had disclosed that the average retail price of automotive gas oil (diesel) increased to N1,406.05 per litre in August 2024.
The new diesel price indicated a 64.58% increase compared to the average diesel pump price of N854.32 per litre recorded in August 2023.
The bureau also noted that the price in August 2024 increased by 1.93% month over month compared to N1,379.48 per litre paid in July 2024.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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