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Home Sectors Energy

Fuel subsidy removal: FG confirms 9,000 filling stations fit for autogas co-location

Chike Olisah by Chike Olisah
July 16, 2023
in Energy
Fuel subsidy removal, Oil and gas stocks,
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The Federal Government has confirmed that there are over 9,000 licensed filling stations across the country that are fit for the co-location of facilities that dispense autogas fuel.

This disclosure is contained in a communiqué issued by the Nigerian Institute of Transport Technology (NITT) at the end of the stakeholders’ engagement forum on the provision of technical manpower and facility for the development and promotion of autogas as a transportation fuel in Nigeria.

The theme of the conference was, ‘Autogas as an alternative fuel for Transportation in Nigeria.’

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The communiqué noted that there are 50 conversion centres currently upgrading for mass conversion and training of technicians in the country.

The conference showed that there was a need for alternative options for transportation fuels such as Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), and Compressed Natural Gas (CNG) known as Autogas, which should become widely used and accepted as an alternative automotive fuel.

The communique pointed out that Nigeria’s gas reserves were about 209 trillion cubic feet, adding that gas production was between 8.15 – 8.35 billion standard cubic feet/day, which was more than enough for the nation.

Auto assemblers producing dual-fuel vehicles

On the autogas program, NITT said, “There are over 9,000 licensed retail outlets classified fit-for-purpose for co-location of autogas fuel nationwide.

  • “There are 50 conversion centres currently upgrading for mass conversion and training of technicians in the country. Auto assemblers are already producing fit-for-purpose dual-fuel vehicles in the country.
  • “The Nigeria Gas Expansion Programme had held extensive multi-sectoral stakeholder engagement and secured impressive program support and buy-in.
  • The government is supporting the deployment of over one million conversion kits for trucks and smaller vehicles.”

Incentives should be provided to motorists

NITT stated that the government was supporting the optimal availability of all autogas fuel streams, adding that the adoption of autogas technology was good for Nigeria in the short and long term.

The communique stated that the forum recommended that the Federal Ministry of Transportation should collaborate with relevant stakeholders and the private sector for research, development, and deployment of autogas fuel in Nigeria.

It said the Federal Government should provide incentives to motorists, especially in the public transport and road freights sub-sectors for the conversion kits acquisition as a way of cushioning fuel subsidy removal.

What you should know

The Federal Government had in 2020 launched the Autogas scheme, called the National Gas Expansion Programme, which involves the conversion of fuel-powered cars and generators from petrol to gas and is aimed at deepening domestic usage of natural gas in its various forms.

This was recently brought to the front burner following the removal of fuel subsidies and the attendant sharp increase in the price of the product.

The Federal Government had in September 2020 directed the 9,000 filling stations nationwide to begin the installation of facilities for gas products as part of moves to improve the utilization of liquefied petroleum gas, compressed natural gas, liquefied natural gas, and autogas as alternative fuels for Nigerians.


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Tags: Auto-GasCNGFuel SubsidyLNGLPGNITT
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

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Comments 2

  1. Imeh Joseph says:
    July 16, 2023 at 9:18 pm

    I’m interested in the training, where is the address and how can one beg the kit

    Reply
  2. Odukoya olatunbosun says:
    July 17, 2023 at 10:30 am

    this is welcome development,in fact the road map should be draw faster because our transportation must stand,the issue of fuel subsidy has crate more hadship in Nigeria. I have car to convert to Autogas

    Reply

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