President Bola Ahmed Tinubu has presented motorists with a choice between purchasing petrol at N1,000 per litre or opting for Compressed Natural Gas (CNG) at N200 per Standard Cubic Meter. This decision was made during a meeting with executives from the Nigerian Independent Petroleum Company (NIPCO) on October 22, 2024, at the State House in Abuja.
Context of the Announcement
The announcement comes amid soaring fuel prices that have left many Nigerians struggling to cope with the rising cost of living. Since the removal of fuel subsidies in May 2023, petrol prices have skyrocketed from N175 to over N1,000, creating significant economic strain on households and businesses alike. The government’s move to provide an alternative fuel option is seen as a response to public outcry over these escalating costs.
Details of the CNG Initiative
President Tinubu highlighted the importance of adopting CNG as a cleaner and more affordable alternative to petrol. He pointed out that the government has introduced incentives for commercial motorists to convert their vehicles from petrol to gas at no cost. This initiative aims to encourage widespread adoption of CNG, which is projected to be 40% to 60% cheaper than traditional fuels like petrol.
During the meeting, Tinubu acknowledged NIPCO’s critical role in promoting CNG adoption and praised their efforts in launching the “Switch to CNG” campaign. He expressed confidence that this transition would not only help reduce dependence on petrol but also lower fuel costs for consumers.
Economic and Environmental Benefits
The shift towards CNG is part of Tinubu’s broader strategy for energy security and economic diversification. By promoting CNG, the government aims to reduce Nigeria’s carbon footprint while providing a more stable and affordable energy source for motorists. The initiative aligns with global trends toward cleaner energy solutions and could stimulate job creation within the gas sector.
Ramesh Kasangra, NIPCO’s director, expressed gratitude for the government’s support and reiterated the company’s commitment to investing in infrastructure that will make CNG more accessible across Nigeria. He highlighted that NIPCO has been a key player in various sectors for over four decades and remains dedicated to contributing to Nigeria’s energy transition.
Public Reception and Future Outlook
While the announcement has been met with cautious optimism by some stakeholders, concerns remain about the high initial conversion costs for vehicles from petrol to CNG. Estimates suggest that converting vehicles can range from N100,000 for tricycles to N1.8 million for larger trucks. Addressing these conversion costs will be crucial for ensuring widespread adoption of CNG among Nigerian motorists.
As Nigeria navigates these challenging economic times, President Tinubu’s initiative represents a potential turning point in addressing fuel affordability and sustainability. The government’s commitment to enhancing CNG infrastructure could pave the way for a more resilient energy landscape, benefiting both consumers and the environment.
By Joseph Johnston,
Youth Editor,
Egogonews Hub
