The Federal Government is planning to introduce alternative petrol known as Compressed Natural Gas (CNG) to Nigerians which will be sold between ₦95 - ₦97 per liter.
With Compressed Natural Gas, fuel will be bought at ₦97 per liter
The Minister of State for Petroleum Resources, Timipre Sylva, disclosed this on Thursday while fielding questions from reporters at Abuja.
He said a pilot experiment has been done in Benin City with the CNG gas where more than 10,000 vehicles successfully operated using it.
Speaking further, the minister promised that the Petroleum Industry Bill (PIB) will be passed prior to May 29, 2020.
With CNG gas as an alternative, Sylva believes petrol will be sold at ₦95 per liter.
An excerpt from this speech:
What we have decided is that we should try and give the masses an alternative. This will move the masses to CNG.
That is transport vehicles for example, out of the PMS loop to be using the CNG. CNG cost less that the subsidised PMS. Per liter the subsidized rate of the PMS is N145 per litre. CNG will cost about N95 to N97 per litre.
Chief Timipre Sylva also promised that the Petroleum Industry Bill (PIB) will be passed before May 29, 2020
The minister told reporters that the Industry hasn't moved forward in a while owing to the PIB that has not been passed. However, plans are in place to bring it to the limelight.
He pointed out that when he became the minister, 2 million barrels per day was being produced, with the intention of producing 4 million barrels per day by 2020.
Sylva recollected that the United Arab Emirates were able to produce 2.7 million barrels of fuel per day and had progressed to producing 4 million barrels per day.
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Presently, Nigeria's daily production is at 1.774 million barrels, according to OPEC.
Several benefits are expected to be gotten when the bill is passed.
One of them, as gathered by Naijauto, includes making available a conducive environment where investors can come in and invest.
He noted that,
Counting on the current harmony between the legislation and executive, we are optimistic that both the Petroleum Industry Administration and the Petroleum Industry Fiscal Bill on the other hand will be passed within the first anniversary of this administration
We want to progress the consideration and passage of the overall petroleum and legislation. The team working in the PIB is on the final of the harmonization of the different versions from 2000 to date (2009, 2012 and 2018).