Fuel marketers have been working to offer alternatives to petrol after revealing that switching from PMS to CNG would reduce the high prices Nigerians are now paying for fuel.
PMS is Premium Motor Spirit (petrol) while CNG is Compressed Natural Gas.
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The marketers made this call during an interview on Wednesday via the National President, Independent Petroleum Marketers Association of Nigeria, Chinedu Okonkwo.
The use of Compressed Natural Gas in automobiles, when fully deployed, is going to be over 400 per cent cheaper than Premium Motor Spirit, Okonkwo said.
Petrol subsidy was removed in less than two days after President Bola Tinubu declared during his inaugural address on May 29, 2023 that the payment of subsidy on PMS had gone.
The pump price of petrol spiked from N198/litre to an average of over N540/litre across the country, a development that also led to an increase in the cost of goods and services nationwide.
However, the IPMAN President said;
What we are saying is that by the time CNG is deployed, it will take off at least 400 per cent of what we are paying for fuel now.
And if you check this 400 per cent, it means that the cost of CNG that will deliver what one litre of petrol is going to deliver, should be less than N110 anywhere in Nigeria, whereas PMS is sold at over N540//litre.
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.
