NLPGA asks members to ignore PPPRA’s administrative charge on LPG

The Nigeria LP Gas Association, NLPGA, has asked its members and operators to ignore the directive of the Petroleum Products Pricing Regulatory Agency (PPPRA) on the levy and administrative fee imposed on Liquefied Petroleum Gas (LPG) or cooking gas despite the product being deregulated.

The association had argued that imposing administrative charge would be counter-productive, especially now that the government has taken deliberate steps to boost gas development, including LPG in Nigeria.

According to the group, barely a few months after the Department of Petroleum Resources (DPR) commenced levying Off-takers’ Permit, which to the group, led to loading disruptions at a number of depots, 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”, the group lamented.

The NLPGA went further saying that the attempt to introduce price regulation through back door, will negatively impact the retail price for an already pauperised populace who are still struggling to recover from a Covid-19 ravaged economy.

“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 the better mutually beneficial business, public health safety and environment for all”, the Executive Secretary, Olakunle Oyebanjo said.