Following the removal of fuel subsidy by the Federal Government, the Independent Petroleum Marketers Association of Nigeria has noted that the price of fuel will reduce.
This information was provided at a press conference that the association’s National President, Chinedu Okoronkwo, hosted in Abuja.
The association said that the reduction in fuel prices is due to the involvement of private investors in the sector.
Okoronkwo reiterated the association’s backing for President Bola Tinubu’s decision to remove of fuel subsidy while expressing hope that the move will help to disentangle the downstream sector because it has allowed space for more private investors.
“Our association has the numerical strength to force down the price of fuel once they start independent importation of the product,” he said.
The IPMAN president went on to say that the organisation has chosen to use compressed natural gas as an alternative energy source in order to lessen the impact of the removal of subsidy. He added that this decision will provide a better and more long-lasting solution to the ongoing fluctuation in the price of petrol on the international market.
In the meeting, IPMAN also decided to work out the specific execution and timetable for the CNG conversion scheme that had been previously agreed upon with Labour centres for 2021.
The cleanest burning fuel available today is compressed natural gas (CNG), which burns with fewer emissions and requires less upkeep for vehicles and engines.
The introduction of CNG, which is less expensive than even firewood, as a substitute energy source would bring relief to the government and its residents, according to Okoronkwo, who had advocated the removal of subsidies and utilisation of CNG.
He said that there was no crude refining in Nigeria; rather, we produced, and that the removal of subsidy was necessary since the dollar’s preferential treatment was so difficult.
“We have also discovered that bringing an alternative that is cheaper than even firewood which is CNG will not only create relief for the government and its citizens but is environmentally friendly.
“The CNG is abundantly available in Nigeria than anywhere in Africa.
“In Niger-Delta region you see billions of tonnes of gas flare being wasted daily, these are huge amounts that should be accruing to our GDP but we are wasting it because there is no market for it.
“So we are asking the government to create the market. How do you create the market?
“What Egypt and India did was to give soft loans to be paid back within stipulated periods from there you can get vehicles to use gas instead of fuel,” he added.