In a move aimed at reducing the cost of cooking gas across the country, the Federal Government has announced the removal of both customs duty and value-added tax (VAT) on the importation of liquefied petroleum gas (LPG), also known as cooking gas, and its associated equipment.

This decision, conveyed in a letter dated November 28, 2023, and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, aligns with President Bola Tinubu’s commitment to improving the investment climate, increasing LPG supply, and promoting clean cooking practices.

The letter, addressed to the Special Adviser to the President on Energy, the Comptroller-General of the Nigeria Customs Service (NCS), and the Chairman of the Federal Inland Revenue Service (FIRS), specifically mentions the exemption of LPG import using HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 from both import duty and VAT. This means that the importation of LPG will now incur a 0% duty rate and a 0% VAT rate, effective immediately.

Furthermore, the Ministry of Finance has instructed the Nigerian Customs Service to comply with the July 29, 2022, presidential directive and withdraw all debit notes issued to petroleum marketers who have imported LPG using codes 2711.1.2.00.00 and 2711.13.00.00 from August 26, 2019, to the present date.

This exemption also extends to other essential LPG equipment, such as LPG cylinders, LPG cascades, gas leak detectors, steel pipes, steel valves and fittings, LPG dispensers, gas generators, and LPG trucks.

This move is expected to significantly reduce the cost of cooking gas for Nigerians, making clean energy more accessible and affordable for households across the country.