Albert Cooper
Thu, Jul 27, 2023 6:15 PM

Nigeria's Fuel Subsidy Removal Leads to Increased Demand for Gas-Powered Generators

BusinessEarn Max 30 Coins💰 Get coins immediately after reading this article

Nigeria's Fuel Subsidy Removal Leads to Increased Demand for Gas-Powered Generators
Nigeria's recent fuel subsidy removal has led to a surge in demand for gas-powered generators as an alternative to expensive petrol. The use of liquefied petroleum gas (LPG) offers a cost-effective solution for households facing frequent power cuts. Despite concerns regarding safety and durability, experts anticipate an increase in LPG consumption per capita in the country.

In a bold move to cut costs and reduce dependence on petrol, Nigeria recently removed its fuel subsidy, leading to a tripled petrol price. This decision has forced many Nigerians to seek cheaper alternatives, with gas-powered generators emerging as a popular choice.

One such user is Justice Ojah, a 26-year-old entrepreneur from Abuja. Prior to the subsidy removal, Ojah heavily relied on petrol to power his two-storey house and cope with frequent power cuts. Following the announcement, he decided to explore other options and discovered a new hybrid carburettor. For the cost of 50,000 naira ($63.45), Ojah successfully replaced his old carburettor, enabling him to switch between LPG and petrol effortlessly. This switch has proven to be a significant cost improvement for Ojah.

"Where I fill my 12.5-kg gas cylinder, it is 12,000 naira to fill it, and that will give me an average of 40 hours," Ojah explained. In comparison, petrol for the same number of hours would cost him at least 50,000 naira.

Reflecting the trend, Alabi Oluwaseun, a mechanic in Lagos, has seen a rise in requests to convert generators to run on gas. In the past month alone, Oluwaseun has worked on 20 households and continues to receive inquiries from potential clients.

Despite the popularity of gas-powered generators, concerns remain regarding the security and durability of the newly introduced gas carburettor. The product has been on the market for less than two months, and there are worries about the potential risks associated with its usage.

Oluwaseun highlights one specific concern related to the use of a rubber hose in the carburettor. He warns that if exposed to heat, the hose may melt, causing gas leakage and potentially leading to a fire accident.

Additionally, gas burns quicker than petrol as it is lighter. Despite these drawbacks, higher fuel prices driven by crude oil prices and exchange rates are likely to contribute to a continued shift towards gas-powered generators.

"We are expecting that the consumption of LPG per capita is actually going to increase in Nigeria," predicts Kelvin Emmanuel, an analyst at Dairy Hills Limited, a public policy consulting firm.

The removal of fuel subsidies has prompted Nigerians to explore alternative energy sources. While the safety and durability concerns of gas-powered generators need to be addressed, the increased consumption of LPG indicates a shift towards a more cost-effective and sustainable solution for power generation in the country.

Source of content: OOO News 2023-07-27 News

More detailed, more comprehensive, fresher news, please visit OOO NEWS.

Share content to earn coins