FG Offers Petrol Alternative at N380/Litre, NNPC Releases 12 Locations To Buy
- The federal government is again promoting CNG as a cheaper petrol alternative to reduce transport costs
- Interested Nigerians can now enjoy a loan to carry out CNG conversion costs and spread payments
- The programme also includes the deployment of about 100,000 CNG kits across the country
Dave Ibemere, a journalist at Legit.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.
The federal government has moved to reduce transportation costs by accelerating the adoption of compressed natural gas (CNG) as an alternative to petrol, which is sold at N380 per litre, compared to over N1,200 per litre for fuel.
The initiative, led by the Presidential Compressed Natural Gas Initiative (Pi-CNG), is part of efforts to lower transport costs for millions of low-income operators across Nigeria.
Source: Getty Images
Credit scheme for transport workers
To achieve its objective, Pi-CNG has partnered with financial institutions to expand access to affordable credit for vehicle conversion to CNG, Punch reports.
Speaking at the flag-off ceremony in Abuja on Wednesday, April 22, Ismaeel Ahmed, the Chief Executive Officer of the initiative, said affordability remains the biggest obstacle to CNG uptake.
The initiative includes a partnership with the Presidential Compressed Natural Gas Initiative and Electric Vehicles, Moniepoint Microfinance Bank Limited, Nigerian Consumer Credit Corporation, and National Credit Guarantee Company Limited.
Ahmed said the programme is designed to eliminate the upfront cost barrier that has slowed the adoption of alternative energy vehicles.
He said:
“This is a very significant partnership. The barrier is the cost of the conversion kit and installation.
“We are reducing that barrier. The kits are being supplied at cost, with no profit margin, because the goal is mass adoption.”
How will the CNG credit up front?
Under the new framework, motorists will be able to spread the cost of CNG conversion over several months through structured credit facilities, instead of paying up front.
Ahmed said repayment flexibility would vary depending on borrowers’ capacity.
He said:
“Instead of paying, for example, N100,000 upfront, you can now spread it over one month, six months or shorter periods depending on agreement.
“That flexibility makes adoption easier for everyday Nigerians.”
He added that the shift to CNG is expected to significantly reduce transport expenses for commercial operators such as tricycle and taxi drivers.
Source: UGC
According to him, a typical keke rider could cut fuel expenses by 60 to 70%, while maintenance costs could also fall sharply.
Ahmed said:
“If a rider spends about N50,000 weekly on petrol and maintenance, CNG could reduce that drastically. Fuel costs drop significantly, and maintenance reduces from weekly to monthly spending.”
Also, the Managing Director of the Nigerian Consumer Credit Corporation, Uzoma Nwagba, said the programme will translate macroeconomic reforms into tangible relief for ordinary Nigerians, the Nation reports.
Nwagba said:
“When this administration began, reforms such as exchange rate unification and subsidy removal improved the macroeconomic environment.
“The question has been how those gains reach people at the bottom. This initiative is part of that answer.”
NNPC releases locations of CNG filling stations
According to the NNPC, motorists in Lagos can now access premium CNG fuel at the following retail outlets:
Lagos Locations:
- Fola Agoro
- Amuwo Odofin
- Marina
- Agege By Pass
- Lakowe
- Odogunyan
Abuja Locations:
- Gaduwa
- Olusegun Obasanjo Way
- Gudu
- Dei Dei
- Gwagwalada
- Ushafa
New petrol prices at NNPC filling stations
Earlier, Legit.ng reported that Nigerian National Petroleum Company Limited (NNPCL) retail outlets have reduced the cost of petrol.
The changes came just three days after the Dangote Refinery had reduced its petrol gantry price by N85 to N1,200 per litre from N1,285.
Petrol was now selling at N1,255 per litre, down from N1,330, representing a reduction of N75.
Source: Legit.ng
