Oil marketers have written to the Federal Government over their proposal to build about 30,000 gas stations to cushion the effects of the proposed subsidy removal on Premium Motor Spirit, popularly called petrol.
The current government has stated that it will stop subsidy payment for petrol by May this year.
To help cushion this, oil marketers, in a letter to the Federal Ministry of Finance, also asked the Federal Government to make the Central Bank of Nigeria release the N250bn intervention fund for the National Gas Expansion Programme as loans to vehicle owner to acquire gas conversion kit.
In the letter by the oil marketers, dated April 3, 2023, and received by the Federal Ministry of Finance on the same day, the marketer stated that they were ready to deploy gas dispensers to 30,000 filling stations nationwide to cushion the impact of fuel subsidy removal.
The letter, which was signed by the National President, Independent Petroleum Marketers Association of Nigeria, Chinedu Okonkwo, and addressed to the finance minister, read in part, “We are writing to request an audience with you to present a palliative solution to cushion the impact of the removal of the unsustainable petrol subsidy.
“Our partners, Gas Analytics & Solutions Ltd, have an agreement with the independent Petroleum Marketers Association of Nigeria to co-locate natural gas dispensers on our network of over 30,000 filling stations in Nigeria.
“This collaboration with IPMAN presents the most economic and expedient platform to deploy the necessary infrastructure to support a fast national roll-out of CNG (Compressed Natural Gas) for vehicles.”
IPMAN expressed belief that this platform would provide a cushion to Nigerians from the shock of high petrol price once subsidy is removed and would significantly reduce the need for foreign exchange to import petrol.
“Furthermore, CNG emits 30 to 60 per cent less Green House Gases than petrol and diesel, making it more appealing to attracting additional financing from international and regional developmental finance institutions that are disposed to supporting natural gas utilisation projects compared to petrol refineries.
In addition, the Nigeria Midstream Downstream Petroleum Regulatory Authority and the Gas Aggregation Company of Nigeria have set up a joint working committee to provide the permits, approvals, and natural gas feedstock as required.
