Some domestic and foreign investors have given the nod to Nigerian oil marketers to boost the use of Compressed Natural Gas (CNG) as an alternative for premium motor spirit (PMS).
The support will help the oil marketers achieve the development of about 30,000 CNG stations across the country. This comes amid the federal government’s decision to establish the Presidential Compressed Natural Gas Initiative, (PCNGI) with the main aim of producing 11,500 CNG-enabled vehicles nationwide.
According to the National President, of the Independent Petroleum Marketers Association of Nigeria, (IPMAN) Chinedu Okonkwo, the move to build 30,000 CNG stations was to cushion the effects of subsidy removal as it directly led to a hike in petroleum prices.
Okonkwo further confirmed that IPMAN was discussing with international and local financiers adding that the conversion process for the filling stations was currently handled by oil marketers.
IPMAN had in April, reached out to the FG with a proposal to build about 30,000 gas stations to cushion the effects of the removal of fuel subsidy.
The body had also advised the FG to authorise the Central Bank of Nigeria (CBN) to release the ₦250 billion intervention fund for the National Gas Expansion Programme as loans to vehicle owners to acquire gas conversion kits.
“Our partners, Gas Analytics & Solutions Ltd, have an agreement with the independent Petroleum Marketers Association of Nigeria to co-locate natural gas dispensers on our network of over 30,000 filling stations in Nigeria.
“This collaboration with IPMAN presents the most economic and expedient platform to deploy the necessary infrastructure to support a fast national roll-out of CNG (Compressed Natural Gas) for vehicles,” the body explained in the letter.
Pump prices of petrol had shot up from ₦195 to between ₦585 and ₦620 after the FG announced the removal of fuel subsidy in May 2023. The cost of CNG however, is going to be over 400% cheaper than PMS and is projected to sell at about ₦110 anywhere in Nigeria, according to oil marketers.