Stakeholders Urge FG To Lead LPG Initiative By Converting Petrol Vehicles To Gas Usage
Following the Federal Government’s directive to filling stations nationwide to begin the installation of facilities for gas products, Stakeholders in the Oil and gas industry have stressed on the need for the government to provide incentives to aid the process.
The Director, Department of Petroleum Resources, Sarki Auwalu, had said the development was aimed at improving the utilization of liquefied petroleum gas, compressed natural gas, liquefied natural gas and autogas as a cheaper and cleaner alternative form of fuel for Nigerians.
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According to Auwalu, 9,000 outlets representing 27 per cent of the number of retail fuel stations would pilot the process with immediate installation and also update the licenses with the DPR.
He said, “The DPR has also approved the deployment of skid-mounted modularized/containerized LPG/autogas handling systems and other intrinsically safe systems for gas storage and handling to promote affordability, accessibility, and availability of the products”.
However, THE WHISTLER findings have shown that government’s support is key to allowing easy penetration and success of the initiative.
The Vice President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigeandi
who lauded the initiative said that the association is yet to consent to it, as it is studying the roadmap to see how feasible it will be.
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He explained that while marketers are yet to key into the initiative, there is need for the government to incentivise the process and make it attractive for investors.
He said, “It is a good program if the government can ensure effective implementation, but for us as an association, we are still studying the process.
“We are studying the roadmap to see its possibility and feasibility but we dont know of any filling station that has been converted yet.
“DPR is still going round to enlighten the filling stations on the benefits of the initiative. But we must also note that the price differential between fuel and gas is key to the success of gas use in Nigeria.”
Adewale Tosin, a motorist in Abuja, in a chat with THE WHISTLER said the initiative is good for the economy based on the fact that vehicles that use CNG often have lower maintenance costs than petrol or diesel-powered vehicles. This, he noted, would reduce their cost and increase their profit.
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“The pricing of natural gas driven vehicles is lower compared to petrol or diesel driven vehicles, this will help us save more money because our expenses will be reduced,” he added.
He explained that the government’s introduction of the initiative would complement the effect of the removal of fuel subsidy which had led to increase in price of petrol.
He said, “It will provide a cheaper and cleaner alternative fuel and remove us from the current captive petrol/diesel market into which every motorist is locked-in.
“We all know that the price of petroleum products affects the prices of all consumer goods and services in the long run.
“So the introduction of a cheaper alternative fuel for public transportation and for transportation of consumer goods will lower prices of all goods and services.”
A Manager in one of the filling stations in Abuja who spoke in confidence said that the gas initiative is a welcome development.
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He said natural gas as alternative to fuel transportation infrastructure is easier to establish within a shorter timeframe compared to refinery project.
He stressed on the need for the government to provide incentives or waivers on CNG conversion kits, CNG delivery trucks, and equipment for constructing CNG fuelling stations.
He also said that tax credits could be extended to gas gathering and compression companies.
He said, “This is a great idea, as we see it being practiced in other countries. But for this to be successful here in Nigeria, the government has to provide incentives for us as filling stations owners.
“There should continous education for both filling station owners and motorists on the benefits of adopting this new initiative.
“The government has to set the example by converting the existing government vehicle to gas alternative and encourage mandatory purchase of vehickes that uses gas by government ministries, agencies, and departments at national, state and local government levels.”
The Technical Adviser, Gas Business and Policy Implementation to the minister of State for Petroleum Resources, Justice Derefaka, assured that over one million vehicle conversion kits would be established in the six geopolitical zones of the country for easy access to autogas.
He said that there will be a list of certified conversion centres to be unveiled within the last quarter of 2020, adding that some filling stations across the country were already adopting the plan by converting their stations to provide an alternative and cheaper source of fuel to Nigerians.
Derefaka said that the government was mindful of the concerns of Nigerians in calling for alternative source of fuel.
“What we are doing is to bring this gas for the filling stations to collocate, so that ordinary Nigerians can have access to this cheaper source of fuel after he has converted his vehicle to dual fuel,” he added.
