IPMAN: Fuel will be sold at N100 per liter, date exposed

After President Bola Ahmed Tinubu removed petrol subsidy, resulting in a significant increase in the pump price of premium motor spirit (PMS) and causing hardship for Nigerians, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced its readiness to offer a cheaper alternative fuel.

According to Chinedu Okoronkow, the chairman of the association, they will soon introduce Compressed Natural Gas (CNG) at a price of N100 per litre before the end of June.

Okoronkow mentioned that they have received considerable support from overseas companies for this initiative. He also highlighted that Nigerians are already using liquefied petroleum gas (LPG) to power their generators, which costs around N700 per kg. In contrast, CNG will be priced below N100 to N110 per litre.

The introduction of CNG is expected to have a positive impact on various sectors. For instance, it will reduce the cost of food production as farmers from rural areas transport their produce to cities.

Currently, it costs them about N1.2 million to fuel trucks with diesel from Kano, but with CNG, the cost will decrease to around N150,000 to N200,000, resulting in significant savings. These savings will translate into cheaper food prices and stimulate other businesses.

Furthermore, CNG will provide affordable energy for processing zones, particularly in agro-based industries, leading to increased productivity and economic growth.

It's important to note that CNG does not replace PMS but offers consumers an alternative choice. The primary advantage lies in its cost-effectiveness, which will alleviate financial burdens rather than exacerbating them.

The introduction of CNG as a cheap fuel source is expected to be a game changer for Nigerians, serving as a practical palliative measure instead of direct monetary compensation.

President Bola Tinubu has been actively working on implementing structural measures to make cheap fuel, including compressed natural gas (CNG) and liquefied natural gas (LPG), readily available to mitigate the impact of subsidy removal.

Mele Kyari, the Chief Executive Officer of the Nigerian National Petroleum Company Limited, confirmed these plans and stated that they would be implemented soon as part of the government's efforts to alleviate the effects of subsidy removal and provide relief to the Nigerian populace.