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FG Announces Plan To Reduce Price Of Petroleum




The federal governmentt is exploring ways of reducing the price of petroleum by providing alternative petroleum.

If actualised, the new pump price will be between N96 and N97 per litre from it’s current N147

Minister of state for petroleum resources, Timipre Sylva, said the alternative petrol will be provided through Compressed Natural Gas (CNG), explaining that CNG fuel has undergone a pilot project in Benin City where over 10,000 vehicles are already running on it.

The minister made the disclosure while addressing journalists in Abuja on Thursday, January 15.

“If we are thinking of reducing pump price for fuel? I could easily say yes and I’m sure all of you wonder why I am saying that,” he said. “We are thinking of giving the masses an alternative. Today we are all hooked on PMS, what we want to do going forward is to see that we are able to move the masses to CNG.

“CNG unit for unit costs is less than even the subsidised PMS. Per litre the subsidised rate of PMS is N145 per litre, while CNG will cost N95 to N97 per litre that is why I could say we want to reduce the cost of fuel, that way when we are given an alternative Nigerians will not notice when the subsidy on PMS is removed.”

The minister expressed the hope that the petroleum industry bill (PIB) will be passed by the national assembly before May 2020. The CNG is a fuel that can be used in place of gasoline, diesel fuel and liquefied petroleum gas (LPG). It is used in traditional gasoline/internal combustion engine automobiles or specifically manufactured vehicles.


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