Experts explain reason for high cost of fuel as Nigerians begin converting vehicle

• The logistical component of the pump price has been blamed for the high price of PMS in the country
• Cleanergy Innovation Ltd’s executive vice chairman said that the country has limited capacity for refineries
• Imam underlined the importance of diversifying energy sources and endorsing President Bola Tinubu's CNG initiative

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The high cost of premium motor spirit (PMS) in the nation has been attributed to the logistics portion of the pump price, particularly the absence of pipelines.

Photo Credit: Maskot
Source: Getty Images

Shettima Imam, the executive vice chairman of Cleanergy Innovation Ltd (CIL), emphasised in her remarks in Abuja that Nigeria has limited capacity for refineries.

According to a The Guardian report, He added that even though the nation has an abundance of gas and uses less than 3% of it domestically, it imports most of its PMS.

“So CNG coming in will bring a cheaper, cleaner alternative to PMS which will bring down the cost and create more job opportunities and so many other advantages for Nigeria and Nigerian populace”

He said that the Nigerian National Petroleum Company Limited and CIL, a business that offers turnkey, custom-made compressed natural gas (CNG) solutions for the autogas and power generation segment in Nigeria, will be making significant investments in gas infrastructure.

Even though his company has already opened six CNG filling stations in Abuja, IMam claimed that reaching this milestone was a big advancement in Nigeria's quest for reasonably priced, long-lasting, locally sourced, and ecologically friendly fuel options.

Imam emphasized that in order to support President Bola Tinubu's CNG plan and diversify energy options, it is imperative that the new facilities be built in a way that adheres to international best practices and guarantees all consumers receive safe, dependable, and effective service.

“It is incremental, we have done six and we are supposed to do some in Lagos. We have invested our resources into this,” Imam added.

Free Conversion of Petrol Vehicles to CNG

Legit.ng reported that more Nigerians are rushing to convert their vehicles from petrol and diesel to compressed natural gas (CNG).

The federal government has made the service free and subsidised for commercial vehicles and inaugurated several centres nationwide.

Legit.ng understands that conversion centres nationwide are witnessing increasing demand from vehicle owners.

Source: Legit.ng