Motorists and transport operators in Nigeria will witness relief soon as the oil marketers have announced the move to develop an alternative to fuel that will sell for between N100 and N110 per litre.
President Bola Ahmed Tinubu had announced the removal of fuel subsidy, which caused a spike in the product’s price across the country.
The national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okoronkwo, said that the association is 90 percent ready to roll out Compressed Natural Gas (CNG) as an alternative fuel, which would sell between N100 to N110 per litre before the end of June.
Speaking in an interview on Channels Television said that CNG would serve as an alternative to petrol.
The IPMAN boss explained that CNG would help reduce Nigeria’s energy consumption cost.
“Very soon, we will roll out. We are 90 percent close to that, which will also unveil many possibilities.”
Okoronkwo said that the petrol subsidy removal had reduced the speed with which Nigeria would have gotten another energy alternative.
“IPMAN has brought relief to a lot of families. “We have used our natural energy, CNG, to power vehicles, generators and even cooking,” Okoronkwo said.
The alternative fuel is expected to reduce the country’s exposure to fuel imports as natural gas would be imported instead.
According to him, the adoption of CNG-powered cars has started gaining speed nationwide due to increased awareness about their efficiency and affordability, compared to ordinary petrol and diesel.
The IPMAN chairman said that if the government accepts its plans, it will act as an assistant, bring relief and create job opportunities.
He said that IPMAN needs to create a market because the demand is already there.
He added that the association had gotten a lot of buy-in from companies overseas.
He revealed that Nigerians are already using liquefied petroleum gas to power their generators, saying that the LPG is about N700 per kg, but CNG will be under N100 to N110 per litre.
“When you check what the impact will be, it will reduce the cost of food because people coming from the hinterlands bring food to the cities.
“From Kano, it takes them about N1.2 million to fuel trucks with diesel, but with this CNG, it will cost them about N150,000 to N200,000.
“About a million naira is saved, which will translate to cheaper food and open up a lot of other businesses.
“It will provide cheaper energy to drive the processing zones like the agro-based industries, where the gas will also create a lot of impacts. “CNG does not replace PMS, but it is a choice. “We are talking of something that will help your purse and not deepen it.
“CNG would be a game changer for Nigerians as it will be the best palliative instead of sharing money.”