Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL), revealed on Wednesday that President Bola Tinubu has begun putting in place structural measures to provide cheap fuel via compressed natural gas (CNG) and liquefied natural gas (LPG).
The president intends to utilise this to mitigate the impact of the loss of subsidies on Nigerians.
Kyari revealed this during a conversation with State House media following a meeting with Tinubu.
He stated that the president intends to implement the structural plan as quickly as possible, as part of the president’s palliative efforts to alleviate the suffering caused by the loss of the subsidy.
He also stated that the country’s refineries were undergoing extensive restoration and will be completed shortly.
According to a recent PwC analysis, compressed natural gas (CNG) has various potential benefits, including lower costs, lower emissions, and improved fuel efficiency.
CNG is also far less expensive than petrol, which might result in significant savings for car owners.
The cost of CNG is more consistent than the fluctuating price swings of petrol.
Because of its cleaner burning qualities, CNG might lower vehicle maintenance expenses by producing fewer engine deposits that jam up the engine over time.
However, there are certain barriers to CNG adoption in Nigeria.
The initial investment necessary to equip current cars with CNG engines, the requirement to develop a viable CNG distribution infrastructure, and the necessity for government regulations and incentives to promote CNG use are all examples of these issues.
While CNG has significant advantages over fuel, PwC believes there are barriers to its adoption, making it an unlikely substitute for petrol in the short to medium term.