See why as Nigerians are rushing fuel priced at N200 after filling stations adjust petrol price

4 months ago 7

More Nigerians are turning to Compressed Natural Gas (CNG) to cut fuel expenses, as petrol prices have increased in the past month
Report shows that some filling stations in certain states are asking motorists to pay up to N937 per litre for petrol
The federal government has decided to provide a subsidy for transporters to convert their vehicles from petrol to CNG

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

More Nigerians are switching to Compressed Natural Gas (CNG) as filling stations continue to sell Premium Motor Spirit (petrol) far above the expected N620 per litre.

According to data from the National Bureau of Statistics, the nationwide average petrol price for May 2024 stood at N769.62, a staggering 223.21% increase from the N238.11 recorded in May 2023.

In some states, such as Jigawa, motorists at filling stations, according to NBS reports, paid as much as N937 per litre.

Also, filling stations in Ondo and Benue States adjusted their pumps to N882.67 and N882.22, respectively.

The states where filling stations charged the lowest petrol prices were Lagos, Niger, and Kwara, at N636.80, N642.16, and N645.15, respectively.

A survey conducted by Legit.ng showed that only NNPC stations in Nigeria sell petrol below N600, while every other private filling station sells it above the expected price of N620 per litre.

For example, in the Ikotun area of Lagos, two stations opposite each other had a price differential of N100.

While one sells to customers at N620, the other filling station set its pump price at N720 per litre.

When asked why the different prices a manger who gave his name as Akeem said:

"We buy from different depots and at various dollar exchange rates. If we get new stock and prices have increased, you don't expect us to sell at the same price. Maybe the other filling station has old stock, which is why theirs is cheaper."

Nigerians get alternative price at N200

With petrol prices not crashing anytime soon, CNG has emerged as a viable option for both private and commercial vehicle owners.

CNG is sold for cars, taxis and tricycles at about N200 per standard cubic foot, while for heavy commercial vehicles, CNG is sold at N260 per standard cubic meter (SCM).

Legit.ng earlier reported that the Nigerian National Petroleum Company Limited (NNPC) and Transit Gas Nigeria Limited (TGNL) completed and commissioned a 5.2 MMSCFD Compressed Natural Gas/Autogas facility at Ilasamaja, Lagos.

Oluwatosin Ibiwoye, a taxi driver who converted her car to run with CNG said she now spend only N4,100 to refill her car compared to N28,000 on PMS.

A commercial vehicle driver, Wale Adeogun also told Legit.ng that he paid N200 per standard cubic foot for CNG, spending only N1,900 instead of the N10,000 he would have spent on petrol.

"My brother, this is much better compared to petrol or diesel. Now, I wake up with peace of mind, knowing I can make enough daily profit to feed my family."

Installation of pumps for cheaper fuel increases

Legit.ng also reported that since November last year, the deployment of dispensing pumps for CNG has risen by 233% in six months.

Michael Oluwagbemi, Coordinator and Chief Executive of the Presidential Initiative on CNG (Pi-CNG), disclosed this as he addressed journalists at a Mikano International CNG Vehicle assembly plant tour in Ogun State.

Mikano has shown interest in deploying about 18 CNG pumps nationwide for widespread CNG adoption.

Source: Legit.ng

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