Leadnaija
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Nigerian government to offer financial support to transform filling stations into refueling points for Compressed Natural Gas (CNG).
CNG is priced at N200 per Standard Cubic Meter, which is far cheaper than paying N1,000 per litre for Premium Motor Spirit (PMS) or petrol.
There is also an order from the government for oil marketers to install CNG pumps at their filling stations.
Hammed Fashola, National Vice President of IPMAN, disclosed that transitioning to CNG distribution needs great capital investment, which individual marketers cannot bear alone.
He added that intervention from the government, by way of grants or a dedicated oil and gas financing institution, is important for the initiative’s success.
Fashola stated: “In IPMAN, we have been advocating for the establishment of a specialized oil and gas bank, akin to the Bank of Industry, that understands the unique dynamics of our business.
“The current high-interest rates from commercial banks are stifling our operations.
“Without sufficient CNG stations, adoption will remain slow. Vehicle owners and truck operators who convert to CNG face challenges finding stations to refill, leading to long queues and delays.
“Our stations are ready; they just need additional facilities for CNG. This is more cost-effective than building entirely new sites. However, the required investment is substantial, and government backing is crucial.”
Fashola expressed optimism about the potential of the CNG program but stressed on the need for proactive government support to address current bottlenecks and ensure widespread adoption.Tap Here To Read Full Details
