May 22, 2024
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OIL & GAS RENEWABLE ENERGY

President Tinubu Projects N250 per Litre for Compressed Natural Gas (CNG)

The Special Adviser to President Bola Tinubu on media and publicity, Ajuri Ngelale, has disclosed that the President’s Compressed Natural Gas (CNG) initiative aims to establish a cost of N250 per litre for CNG. Speaking on Channels Television’s Business Morning show, Ngelale emphasised the significance of the CNG initiative, which is being led by Femi Gbajabiamila, the Chief of Staff.

Cable reported that, Ngelale said the initiative intends to introduce 11,500 new CNG-fueled vehicles in the short term, with a focus on mass transit systems across all states in Nigeria. He underlined the importance of addressing rising energy costs amid inflation and increased food prices. He noted that the transition to CNG-fueled vehicles could significantly lower transportation expenses for the general population.

Ngelale explained, “Being able to ensure that we can provide CNG-fueled buses and the like that would crash the cost from PMS-fueled buses at about N620 per litre on average, you’re now looking at about N250 per litre on average for CNG.”

To accelerate the conversion process from Premium Motor Spirit (PMS) to CNG, the government will roll out 55,000 new CNG conversion kits for existing PMS vehicles. Additionally, 56 new CNG filling stations will be established across all states within the next 16 months, with 21 expected within the next nine months and an additional 35 by April 2025.

Ngelale also highlighted the plan to grant customs duties exemptions and VAT exemptions on all CNG conversion kit imports to further facilitate and make affordable the process of transitioning to CNG for families throughout Nigeria.

President Tinubu’s approval of the Presidential Compressed Natural Gas Initiative (PCNGI) is geared towards alleviating the impact of petrol subsidy removal by reducing energy expenses for Nigerian citizens.

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