The federal government will consider assisting independent fuel marketers financially in installing Compressed Natural Gas (CNG) pumps at filling stations.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had earlier ordered all filling stations to commence selling CNG.
The order is part of President Bola Tinubu administration’s broader plan to accelerate the adoption of CNG across Nigeria.
CNG is a fuel gas under pressure that remains clear, odourless and non-corrosive. It is an alternative to petrol.
According to Nagendra Verma, the managing director of NIPCO Gas said AutoGas for cars, taxis and tricycles is being sold at about N200 per standard cubic foot, while for heavy commercial vehicles, CNG is sold at N260 per standard cubic meter (SCM).
Punch reports that following the directive, the Independent Petroleum Marketers Association of Nigeria (IPMAN) complained that installing CNG pumps was too expensive.
They cited the current high cost of borrowing from banks as one reason it will be challenging to help achieve the government’s objectives.
Chinedu Ukadike, quoted in the report, noted that IPMAN members support the federal government move but lack the funds to install CNG pumps in filling stations across the country.
He said:
In response, Michael Oluwagbemi, the programme director/chief executive officer of the Presidential Compressed Natural Gas Initiative, said the government would consider assisting the marketers if they needed funding to install CNG pumps at their filling stations.
He, however, noted that the marketers already have access to a number of government interventions.
Michael Oluwagbemi added:
Meanwhile, TimesNow.com.ng earlier reported that the NNPC sent an important message to Nigerians about petrol scarcity.
The Nigerian National Petroleum Company Limited (NNPC) assured that it has over 1.5 billion litres of stock of premium motor spirit (PMS), also known as petrol, enough to serve the country for the next 30 days.
This was disclosed in a statement released on X (formerly Twitter) on Tuesday, May 7, 2024, and signed by Olufemi Soneye, the company’s chief corporate communications officer.
Proofreading by James Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
