Nigeria

FG says it is working on reducing price of petrol to N97 per litre

Friday, January 17, 2020 at 11:52 AM by Kess Ewubare

- The federal government discloses that it is working to provide alternative petrol for Nigerians at the cost of N95 to N97 per litre

- Timipre Sylva, minister of state for petroleum resources, says the alternative petrol will be provided through Compressed Natural Gas (CNG)

- The minister explains that CNG fuel has undergone a pilot project in Benin City where over 10,000 vehicles are already running on it

The federal government has disclosed that it is working to provide alternative petrol for Nigerians that will cost between N95 to N97 per litre.

Timipre Sylva, minister of state for petroleum resources, told reporters in Abuja on Thursday, January 16, that the alternative petrol will be provided using the compressed natural gas (CNG), The Cable reports.

The minister made the disclosure when asked whether the government was going to reduce the pump prices of the Premium Motor Spirit (PMS) to make it more affordable.

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He said the CNG fuel has undergone a pilot project in Benin City where over 10,000 vehicles are already running on it, The Nation reports

Sylva noted that with CNG the cost of fuel will reduce to about N95 per litre.

"If we are thinking of reducing pump price for fuel? I could easily say yes and I’m sure all of you wonder why I am saying that,” he said.

“We are thinking of giving the masses an alternative. Today we are all hooked on PMS, what we want to do going forward is to see that we are able to move the masses to CNG gas.

“CNG unit for unit costs less than even the subsidised PMS. Per litre the subsidised rate of PMS is N145/l. CNG will cost N95 to N97/l that is why I could say we want to reduce the cost of fuel, that way when we are given an alternative Nigerians will not notice when the subsidy on PMS is removed.”

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The minister expressed the hope that the petroleum industry bill (PIB) will be passed by the national assembly before May 2020.

The CNG is a fuel that can be used in place of gasoline, diesel fuel and liquefied petroleum gas (LPG). It is used in traditional gasoline/internal combustion engine automobiles or specifically manufactured vehicles.

Meanwhile, a forum of civil societies organization in Nigeria under the aegies of Pan Nigeria Forum has urged President Muhammadu Buhari to ensure the removal of petroleum subsidy.

The forum which comprises of 120 community based associations, community based organizations, grassroots oriented institutions, students and pro-advocacy groups, stated that the move would ensure functional refineries in the country.

The group made the demand after holding a meeting in Abuja recently, where it also extolled the leadership showcased by the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kolo Kyari.