In response to the recent elimination of fuel subsidies, which has led to a significant increase in the price of Petroleum Motor Spirit (PMS) from N187 per litre to over N500 per litre, oil marketers have announced plans to provide relief to motorists and transport operators in Nigeria.
Chinedu Okoronkwo, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), shared this assurance during an interview with Channels TV on Wednesday.
During the program, Okoronkwo revealed that the organization is nearing 90% completion in its preparations to launch Compressed Natural Gas (CNG) as an alternative fuel by the end of June.
He explained that the cost of CNG would range from N100 to N110 per litre, and it would serve as a substitute for gasoline.
Furthermore, Okoronkwo emphasized that CNG usage would help reduce Nigeria’s energy consumption expenses.
“We will be rolling out very soon. We are almost 90% ready, which will unlock numerous possibilities,” he stated.
According to reports, Okoronkwo highlighted that the removal of petrol subsidies had delayed the development of alternative energy sources in Nigeria.
“IPMAN has provided relief to many families by utilizing our natural energy resource, CNG, to power vehicles, generators, and even for cooking purposes.”
He further stated that the adoption of CNG-powered vehicles has been gaining momentum across the country due to their affordability and efficiency compared to conventional petrol and diesel vehicles.
The chairman expressed his hopes for government approval, noting that IPMAN aims to assist, provide relief, and create employment opportunities.
He mentioned that there is already significant demand in the market, and IPMAN has received support from foreign companies. He cited the example of Nigerians currently using liquefied petroleum gas (LPG) to power their generators, highlighting that while LPG costs about N700 per kg, CNG will be priced below N100 to N110 per litre.
“When considering the impact, it will lead to a reduction in food costs because individuals from rural areas transport food to the cities. For instance, it costs around N1.2 million to fuel trucks with diesel from Kano, but with CNG, it will only cost about N150,000 to N200,000. This saves approximately one million naira, which will translate into cheaper food and create opportunities for various businesses,” Okoronkwo explained.
He added that CNG will provide affordable energy for driving processing zones, particularly in agro-based industries, where the use of gas will have significant effects.
“It’s important to note that CNG does not replace PMS; it is simply an alternative. We are presenting an option that will ease financial burdens rather than exacerbate them,” Okoronkwo concluded.
The introduction of CNG is expected to be a transformative solution for Nigerians, serving as an effective form of palliative rather than mere cash distribution.
