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Following the recent elimination of fuel subsidies, oil marketers in Nigeria have given assurances that relief is on the horizon for motorists and transport operators

Oil marketers to introduce cheaper 'alternative fuel' as subsidy is removed | Pulse Nigeria

Ima Elijah

<h3>Following the recent elimination of fuel subsidies, which has resulted in a significant surge in the cost of Petroleum Motor Spirit (PMS) from ₦187 per litre to over ₦500 per litre, oil marketers in Nigeria have given assurances that relief is on the horizon for motorists and transport operators.</h3>

In an interview with Channels TV on Wednesday, June 21, 2023, Chinedu Okoronkwo, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed optimism about the situation. He stated that the organisation is well-prepared, with a 90% readiness, to introduce Compressed Natural Gas (CNG) as an alternative fuel by the end of June.

During the interview, Okoronkwo disclosed that the price of CNG would range between ₦100 and ₦110 per litre, emphasising that this fuel would replace gasoline. He further elaborated that CNG adoption would help alleviate Nigeria's energy consumption costs, noting, "Very soon, we will roll out. We are 90% close to that, which will also unveil many possibilities."

According to reports, Okoronkwo explained that the removal of petrol subsidies had hindered the nation's progress towards acquiring another energy alternative. He stated, "IPMAN has brought relief to a lot of families. We have used our natural energy, CNG, to power vehicles, generators, and even cooking."

Moreover, he emphasised that CNG usage would reduce Nigeria's dependence on imported fuel, as natural gas would take its place. Okoronkwo highlighted the growing awareness among Nigerians about the affordability and efficiency of CNG-powered vehicles, which has led to their increased adoption throughout the country.

Pending government approval, the IPMAN chairman expressed his organisation's commitment to providing assistance, relief, and employment opportunities. He emphasised the need for IPMAN to create a market since there is already significant demand.

Okoronkwo revealed that the association has received considerable support from foreign companies and cited the example of Nigerians already using liquefied petroleum gas (LPG) to power generators, stating that LPG costs approximately ₦700 per kg, while CNG would be priced below ₦100 to ₦110 per litre.

In terms of the benefits, Okoronkwo pointed out, "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." He further explained that with CNG, the cost of fueling trucks from Kano, for example, would decrease from ₦1.2 million to approximately ₦150,000 to ₦200,000, resulting in significant savings that could translate into cheaper food and the expansion of various businesses.

The IPMAN president emphasised that CNG does not replace PMS but provides an alternative choice that will be more economical for consumers. He concluded, "CNG would be a game changer for Nigerians as it will be the best palliative instead of sharing money."

A man with jerrycans waits to buy fuel in Eldoret town on April 3, 2022 amid a biting shortage. Kenya is staring at a fuel crisis due to delays in subsidy payouts by the government. Jared Naytaya | Nation Media Group

Oil marketers to introduce cheaper 'alternative fuel' as subsidy is removed

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