NEWS

Presidency says cost of Compressed Natural Gas, CNG is projected at N250 per litre

The Presidency has said that the cost of Compressed Natural Gas (CNG), a cheaper alternative to Premium Motor Spirit, otherwise known as petrol, is projected to cost N250 per litre.

The proposal for the use of CNG by the Federal Government and other stakeholders is part of efforts to make mass transportation more affordable after the removal of fuel subsidy which has led to a hike in the price of the product.

This was made known by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, while making a live appearance on a Channels Television programme, Business Morning, on Tuesday, August 22, 2023.

Ngelale pointed out that getting the product cheaper was part of Tinubu’s “very important” Presidential Compressed Natural Gas Initiative.
What the Presidential media aide is saying

Ngelale said that the policy, chaired by the Chief of Staff to the President, Femi Gbajabiamila, will roll out 11,500 new CNG fuel vehicles in the near term, focusing on mass transit systems across all states of the federation.

He noted that the initiative targets lower-income earners with provision of CNG-fuelled buses which will crash the cost from PMS-fuelled buses at about N620 per litre on average”.

He said, “You’re now looking at about N250 per litre on average for CNG.

“That’s going to have a massive impact on the ability of the everyday Nigerian going to work and back, going to market and back using mass transit across our states. That’s going to do that in the immediate term.”

Rollout of 55,000 new CNG conversion kits

The presidential spokesman also drew attention to the immediate rollout of 55,000 new CNG conversion kits for existing PMS vehicles to further accelerate the process of conversion and transition from PMS to CNG.

He said, “But I need to note that it is one thing to deal with the demand side of the CNG equation,’’ explaining that in dealing with the supply side, the President, through the Nigerian National Petroleum Company Limited (NNPCL), struck a deal with NIPCO.

Ngelale stated, “[The deal] effectively is going to roll out 56 new CNG filling stations across all states of the federation within the next 16 months — 21 new CNG filling stations within the next nine months and then 35 CNG filling stations between April 2024 and April 2025, which essentially takes us to the midterm of his first term in office,” he said.

“We’re also going to be rolling out an exemption on customs duties as well as VAT exemptions on all importation of CNG conversion kits to further accelerate and cheapen the prices of CNG conversion for families across Nigeria and that is the President’s focus at this time.”

What you should know

Recall that a few days ago, President Bola Ahmed Tinubu established the Presidential Compressed Natural Gas Initiative (PCNGI) in order to revolutionize the transportation landscape in the country, targeting over 11,500 new CNG-enabled vehicles and 55,000 CNG conversion kits for existing PMS-dependent vehicles.

The initiative will also boost local manufacturing and assembling of conversion kits while creating jobs for the country’s populace.

In a related development, Ngelale had earlier said that the Federal Government is offering zero customs duty and zero value-added taxes (VAT) on the importation of compressed natural gas (CNG) conversion kits into the country.

He said that the government recognizes the need to crash energy prices in the country after the removal of fuel subsidy which has affected the citizenry when it comes to increased food and transportation costs.

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