President Bola Tinubu has revealed the plan to roll out programmes aimed at making compressed natural gas (CNG) and liquefied natural gas (LPG) cheaper as a measure to mitigate the impact of the Premium Motor Spirit (Petrol) subsidy removal on Nigerians.
Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company (NNPC) Limited made this known on Wednesday, after a session with President Tinubu.
According to him, the President’s structural approach to the deployment of cheap compressed natural gas (CNG) and liquefied natural gas (LPG) is being considered palliative for Nigerians after subsidy removal.
The NNPCL GCEO emphasised that the President has promised to roll out the plan soon.
He also added that there was already an ongoing rehabilitation exercise in the nation’s refinery, which would be unveiled in no distant time.
This strategic plan to provide cheaper alternative fuel for petrol was earlier revealed by Elder Chinedu Okoronkwo, National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), on Monday during an interview Channels Television’s Business Morning, stating that the marketers are 90 percent ready to roll out Compressed Natural Gas (CNG) which would be sold between N100 to N110 per litre by the end of June.
He emphasised that CNG is a viable alternative to petrol, which would help to bring down the cost of energy in the country.
Experts have confirmed that switching from petrol to Compressed Natural Gas (CNG) can save car owners about 40 percent of the amount spent on petrol.
S&P Global Platts Analytics had in a recent review on CNG versus PMS revealed that the removal of petrol subsidy by the Nigerian Government will incentivise investment in facilities that would lower the cost of installation of conversion units, the cost competitiveness of autogas/CNG fuel against petrol and easy accessibility of refuelling stations.
EnergyDay therefore gathered that the Government’s plan to roll out cheaper autogas and CNG could provide a sufficient incentive to kickstart conversion efforts.
The President is relying on the country’s huge gas resources estimated at over 200 trillion cubic feet (Tcf), to achieve this.