Home News FG plans to reduce price of petrol to N97 per litre

    FG plans to reduce price of petrol to N97 per litre

    The federal government has disclosed that it is working to provide alternative petrol for Nigerians at the cost of N95 to N97 per litre.

    The minister of state for petroleum resources, Timipre Sylva, says the alternative petrol will be provided through Compressed Natural Gas (CNG).

    The minister made this disclosure when he was asked whether the government was going to reduce the pump prices of the Premium Motor Spirit (PMS) to make it more affordable.

    The minister explains that CNG fuel has gone through a pilot project in Benin city of Edo state where over 10,000 vehicles are already running on it.

    The minister told reporters in Abuja on Thursday 16, that the alternative petrol will be provided using the compressed natural gas (CNG), The Cable reports.

    Sylva noted that with CNG the cost of fuel will reduce to about N95 per litre.

    “If we are thinking of reducing pump price for fuel? I could easily say yes and I’m sure all of you wonder why I am saying that,” he said.

    “We are thinking of giving the masses an alternative. Today we are all hooked on PMS, what we want to do going forward is to see that we are able to move the masses to CNG gas.

    “CNG unit for unit costs less than even the subsidised PMS. Per litre the subsidised rate of PMS is N145/l. CNG will cost N95 to N97/l that is why I could say we want to reduce the cost of fuel, that way when we are given an alternative Nigerians will not notice when the subsidy on PMS is removed.”

    The minister had expressed the hope that the petroleum industry bill (PIB) will be passed by the national assembly before May 2020.

    The CNG is a fuel that can be used in place of gasoline, diesel fuel and liquefied petroleum gas (LPG). It is used in traditional gasoline/internal combustion engine automobiles or specifically manufactured vehicles.

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