Nigeria’s Petrol Marketers Reveal Plans to Roll Out Cheap Fuel at N100 Per Litre

Motorists and transport operators in Nigeria will witness relief soon after the Nigerian government ends the petrol 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, revealed that the association is 90% 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.

The introduction of CNG as a viable alternative to petrol is expected to have a substantial impact on Nigeria’s energy consumption costs. In an interview with Channels Television, Okoronkwo emphasized that CNG would play a vital role in reducing the country’s energy expenses. He further stated that CNG has the potential to revolutionize Nigeria’s energy sector, saying, “We are very close to achieving that, which will open up numerous possibilities.”

The removal of petrol subsidies has hindered the development of additional energy alternatives in Nigeria. However, IPMAN’s initiative to introduce CNG has already brought relief to many families. The utilization of CNG as an energy source for vehicles, generators, and cooking purposes has gained popularity due to its efficiency and affordability compared to traditional petrol and diesel.

IPMAN intends to create a thriving market for CNG and believes that its implementation will not only provide relief to Nigerians but also generate employment opportunities. The association has garnered substantial support from international companies, further solidifying its plans to introduce CNG as an alternative fuel. It is worth noting that Nigerians have already started using liquefied petroleum gas (LPG) to power their generators, with LPG priced at approximately N700 per kg. In contrast, CNG is expected to be available at a significantly lower cost, ranging between N100 and N110 per litre.

The adoption of CNG is expected to have far-reaching effects beyond reduced fuel costs. Okoronkwo highlighted that the introduction of CNG will lower the expenses associated with transporting food from rural areas to urban centers. For example, the current diesel fuel costs for transporting goods from Kano to cities amount to around N1.2 million, whereas with CNG, the cost is estimated to be between N150,000 and N200,000. This substantial cost reduction will ultimately lead to lower food prices and the growth of various businesses.

Moreover, CNG is anticipated to benefit processing zones, particularly agro-based industries, where the affordability of gas will have significant positive impacts. It is important to note that CNG does not replace petrol but rather offers consumers a budget-friendly alternative choice. The introduction of CNG is poised to be a game-changer for Nigerians, serving as an effective long-term financial relief measure rather than temporary assistance.

As IPMAN gears up to launch CNG, motorists and transport operators in Nigeria eagerly anticipate the availability of this affordable fuel. The association’s commitment to providing relief to Nigerians and reducing the country’s dependence on imported fuels represents a significant stride towards achieving a more sustainable and cost-effective energy landscape.