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President Bola Tinubu has announced that Nigerian motorists can now choose between buying fuel at ₦1,000 per liter or opting for the more affordable Compressed Natural Gas (CNG) at ₦200 per Standard Cubic Meter.
The president made this announcement during a meeting with executives of the Nigerian Independent Petroleum Company, NIPCO, at the State House in Abuja, on Tuesday.
Read Also: Nigerian Govt Bans Export Of Cooking Gas As Prices Surge
“Nigeria’s motorists can buy petrol at ₦1,000 per litre or equivalent gas per Standard Cubic Meter at ₦200.
“We have also introduced incentives for commercial motorists to convert from petrol to gas” free of cost,” Bayo Onanuga, Presidential spokesman, quoted Tinubu to have said.
During the meeting, Tinubu acknowledged NIPCO’s role as a critical player in enhancing the adoption of CNG as an alternative fuel.
He also emphasized he significance of the adoption of CNG in reducing the nation’s reliance on petrol and cutting down fuel costs for consumers.
In other news, amid the hike in the price of the Liquefied Petroleum Gas, LPG, also known as cooking gas, the Federal Government has banned the export of the commodity produced in Nigeria.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said this in a statement, expressing worry over the rising cost of the commodity.
The prices of the commodity have increased from an average of N1,100-N1,250 per kg to N1,525 per kg.
Read Also: Dangote Confirms Out-Of-Court Deal With NNPCL On Imports
According to the statement, Ekpo convened a meeting with key stakeholders in the LPG value chain to address the escalating prices and the hardship they impose on Nigerians.
The minister announced the following directives:
Short-Term Solution: Effective from November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and LPG producers are to halt the export of LPG produced in the country. If they continue exporting, they must import an equivalent volume at cost-reflective prices.
Pricing Framework: The NMDPRA will engage stakeholders within 90 days to create a domestic LPG pricing framework. The new framework will be indexed to the cost of in-country production, replacing the current system of using external market prices from regions like the Americas and Far East Asia.
Long-Term Solution: Over the next 12 months, the government plans to develop infrastructure for blending, storing, and distributing LPG, with the aim of halting exports until domestic supply is sufficient and prices stabilize.
