Oil Marketers Say Using Natural Gas Going To Be 400% Cheaper Than Petrol

Independent Petroleum Marketers Association of Nigeria (IPMAN) pointed out that using natural gas is going to be 400 percent cheaper compared to Premium Motor Spirit, also known as petrol.

"What we are saying is that by the time CNG is deployed, it will take off at least 400 percent of what we are paying for fuel now," IPMAN's national president, Chinedu Okonkwo said, Punch reported.

Okonkwo explained that the cost of CNG will be delivered at less than N110 for one litre, across Nigeria. Whereas, petrol prices have skyrocketed to more than N540 per litre.

He continued, "That is what we are saying, and this is based on the current open market exchange rate, because we are not using the former official rate of the Central Bank of Nigeria, rather we are using the parallel market calculation. So, floating the forex does not affect our calculations."

The IPMAN's president was questioned if the oil marketers have spoken with the new government regarding deploying CNG, in response, Okonkwo said that oil dealers are already in conversation with the new government on this topic.

"We are talking with them. Government is a continuum. We are still talking with this new government and we hope the meeting between them and labor will yield desired results," he said. "You know part of their (labor) demand is that the government should include CNG into the energy mix. Once that is given and followed, it will give us a better trajectory."

The Federal Government created a steering committee earlier this week to discuss various demands of organized labor unions, including allowing vehicles to be CNG-based. The committee will share a framework next month.

Aside from IPMAN,, Nigeria Liquefied Petroleum Gas Association (NLPGA) also proposed the same CNG-based policy to the government on Wednesday.

This information was shared following a meeting held at the State House, Abuja - which included the Special Adviser to the President on Communications, Special Duties and Strategy, Dele Alake and President of the Nigerian Labour Congress, Joe Ajaero alongside President of Trade Union of Nigeria, Festus Osifo.

The conversion proposal came after Nigeria's new President, Bola Ahmed Tinubu announced during his inauguration ceremony, held on May 29, that fuel subsidy is gone, which skyrocketed petrol prices from N195 per litre to N600 per litre in several parts of Nigeria.

At that time, IPMAN pointed out that the government should've held a discussion with the oil marketers before making such a decision, noting that they are not in support of the removal of the fuel subsidy.