Nigeria encourages use of CNG vehicles to remove subsidy on petrol

January 17, 2020. The Minister of State for Petroleum Resources, Timipre Sylva, said that plans are ongoing by the Federal Government to expand the use of compressed natural gas (CNG) in order to stop subsidy payment on Premium Motor Spirit, also known as petrol.

Sylva said that the government was set to discourage the use of petrol, especially for commercial transportation. He explained that payment of subsidy on petrol was taking a toll on the finances of the country, adding that the government was working toward encouraging Nigerians to use CNG as fuel for transportation.

The minister of state noted that government had over the years done a pilot scheme on CNG in Benin City, and it had proven that it would go a long way in serving as an alternative to fuel if expanded to the entire country.

According to him, while PMS at subsidized price goes for N143 per liter, CNG goes for between N95 and N97 per liter.

“We will start very soon to roll out. Already, there is a pilot program in Benin, which has worked for a long time. About 4,000 vehicles are already on CNG in Benin. We want to expand that CNG program across the country and we believe it is going to create a lot of opportunities for Nigerians and also give Nigerians a new lease of life because the commodity would be accessible,’’ he said.

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