To mitigate the impact of subsidy removal, the Independent Petroleum Manufacturers Association of Nigeria (IPMAN) has advised Nigerians to consider Compressed Natural Gas (CNG) as an alternative energy source.
Mr Chinedu Okorokwo, the National President of IPMAN, disclosed this in an interview with the News Agency of Nigeria (NAN) in Abuja on Wednesday, as the federal government continues its dialogue with organized labor over the increase in the price of premium motor spirit (PMS), also known as gasoline.
In his inaugural address on May 29, 2023, President Bola Tinubu announced that the payment of fuel subsidies had ended because there was no provision for them in the 2023 budget after June 30.
His announcement prompted marketers to hoard fuel, and when the Nigerian National Petroleum Company (NNPC) Limited increased the price of the product across its retail outlets, prices of food, transportation, and services increased, prompting the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to threaten a nationwide strike, which was scheduled to begin today but was halted by the National Industrial Court.
At a meeting between the government and labor unions on Monday evening, it was determined that the adoption of CNG as an alternative fuel would be the best option, and that the 2021 CNG conversion program should be revived.
CNG, a gas primarily composed of methane that produces fewer emissions, is the cleanest burning fuel currently available, requiring less vehicle maintenance and extending engine life.
In an interview with NAN, Mr. Okoronkwo stated that introducing CNG as an alternative energy source, which was cheaper than even firewood, would provide relief for the government and its citizens.
“We have also discovered that introducing CNG, a cheaper alternative than even firewood, will not only provide relief for the government and its citizens, but it will also be environmentally friendly.
“CNG is more accessible in Nigeria than anywhere else in Africa.
“Every day, billions of tonnes of gas flare are wasted in the Niger Delta region; these are enormous amounts that should be contributing to our GDP, but we are wasting them because there is no market for them.
Therefore, we are requesting that the government create the market. How is the market created?
“What Egypt and India did was provide soft loans that must be repaid within specified time periods; from there, you can acquire vehicles that use gas instead of fuel,” he explained.
“There is a franchise for the bottling of CNG so that an average housewife can use it,” he added, noting that the introduction of CNG would mitigate the effect of the current high cost of fuel, as a litre of CNG would cost no more than N130.
He suggested that repairing the local refineries would mitigate the removal’s effects by eliminating the cost of importation and exportation.
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