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LPG Administrative Charge: NLPGA instructs members to ignore PPPRA Directive


Chinazor Megbolu    |   

The Nigeria LP Gas Association, (NLPGA), has instructed its members and operators to ignore the directive of the Petroleum Products Pricing Regulatory Agency (PPPRA) directive on the levy and administrative fee imposed on Liquefied Petroleum Gas (LPG).

The association added the levy was also slammed on cooking gas despite the product being deregulated.

The group maintained that the directive by PPPRA on administrative charge would be counter-productive, now that the government has taken deliberate action towards boosting gas development and LPG in the country.

The NLPGA pointed out that it was not long after the Department of Petroleum Resources (DPR) commenced levying Off-takers’ Permit, that the loading disruptions at a number of depots began.

“The PPPRA has now announced that it is levying almost N50,000 per 20MT truck as administrative fee.

“For instance, the current count of levies on a 20MT LPG truck has exceeded N120, 000 (NUPENG- N23,000, DPR’s Off-Take Permit – N50, 000, PPPRA’s ADMIN Fee – N49,200 = N122,200 just to list a few), effectively doubling the product cost,” NLPGA said.

However, they posited that the introduction of price regulation through back door by PPPRA will impact the retail price for an already pauperised populace who are still struggling to recover from a Covid-19 ravaged economy negatively.

According the Executive Secretary, NLPGA, Mr. Olakunle Oyebanjo; “it has come to the attention of the Executive Committee that the Petroleum Products Pricing Regulatory Agency (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.

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

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