Conversion Of Five Million Vehicles From Petrol To Gas Usage Begins In March—FG

…Abuja, Kaduna, Kano, Lagos To Benefit In Phase 1

The federal government will from March this year begin the conversion of five million vehicles from petrol to gas usage.

The Minister of State for Petroluem Resources, Timipre Sylva disclosed this during a meeting with stakeholders in the oil and gas sector in Abuja.

Sylva said the conversion became imperative to cushion the negative impact of the planned fuel subsidy removal and give Nigerians an alternative to Premium Motor Spirit.

President Muhammadu Buhari had in December 2020 inaugurated the the National Gas Expansion Programme which promotes the transition from petrol to gas for automobiles,

The federal government, through the Nigerian National Petroleum Company during the roll-out of the program in Abuja, had assured of free conversion services in some selected retail stations to help interested motorists switch to motor gas.

During the launch by the President, the Federal Government’s Auto-gas program was to deliver at least one million vehicle conversions by the end of 2021 and herald the clean energy transition for Nigeria and delivery of cheap transportation fuel

The President had said the auto gas initiative will lead to economic growth and development of the country.

But speaking at the meeting, Sylva noted that with abundant gas reserves of over 206.53 TCF, a population of about 200 million people and the enactment of the Petroleum Industry Act, the continuous absorption of an under-recovery deficit would be eliminated when the alternative fuel comes on-stream.

Some of the states that will benefit from the first phase of the conversion are Lagos, Kano, Kaduna, Rivers and the Federal Capital Territory.

Based on the programme, the government will work with Original Equipment Manufacturers (OEM) and oil and gas marketers to convert one million public transport vehicles and install 1,000 refuelling centres within 36 months.

A breakdown indicated that from the first to 18 months of implementation of the programme, 500,000 conversions would take place and 580 refuelling centres would be supplied by five OEMs; while from 18- 36 months another 500,000 conversions and 420 refuelling centres supplied by six OEMs would materialise.

“Target is to reach 5,000,000 conversions by achieving a 20 per cent y-o-y increment (from year 3) which could be accelerated as the market matures,” the federal government stated.

In order to fast track the implementation of the auto-gas initiative, the government has promised to provide 50 per cent equity participation as well as encourage credit scheme investments with partner nations and OEMS.