Jennifer Thompson
Mon, Aug 28, 2023 8:15 AM

NGEP Accuses Oil and Gas Cartel of Frustrating Efforts to Promote Gas Alternatives

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NGEP Accuses Oil and Gas Cartel of Frustrating Efforts to Promote Gas Alternatives
The National Gas Expansion Programme (NGEP) has accused the oil and gas cartel of hindering its efforts to promote alternatives to petroleum motor spirit (PMS) after the removal of fuel subsidy. NGEP Chairman, Dr. Mohammed Ibrahim, called for government consistency and highlighted the capacity of filling stations to become multi-fuel stations. The article discusses the challenges faced by NGEP and the potentials of gas alternatives, while shedding light on the frustration with accessing NGEP funds in the Central Bank of Nigeria.

Lagos - The National Gas Expansion Programme (NGEP) has accused the cartel in the oil and gas industry of frustrating its efforts to further publicize the several alternatives to petroleum motor spirit (PMS) to the public, following the removal of fuel subsidy.

The body also claimed that the same cartel goes around telling the people that the Federal Government would soon restore fuel subsidy.

Dr. Mohammed Ibrahim, the Chairman of NGEP, insisted that the gas alternative for vehicles had come to stay during the annual training capacity building of Nigeria Auto Journalists Association (NAJA) in Lagos.

Ibrahim revealed that 9,000 out of 10,000 filling stations in Nigeria are qualified to become multi-fuel stations, where vehicle owners could refuel with autogas and petrol.

However, he challenged the government to maintain policy consistency and sustain the alternative fuel programme for the good of all.

"The powerful subsidy cartel has frustrated every single aspect of our work. They tell people, 'don't mind them; it would never happen. Government will never remove subsidy.' That is exactly what they have been saying for three and a half years until President Bola Tinubu did it on May 29," Ibrahim stated.

He highlighted the importance of sustaining the programme, despite opposition, emphasizing that under the NGEP programme, filling stations would be retrofitted to sell Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and provide charging ports for Electronic Vehicles (EVs), alongside PMS and other existing products.

Ibrahim projected that once gas became widely acceptable, a significant number of petrol stations would close shop as vehicles with alternative fuel sources would require less spending on refueling.

"Just imagine that you have a truck from Lagos to Maiduguri or from Enugu to Kano that will not refuel on the way. They can go 2000km without refueling. Correspondingly, a number of retail outlets would have to look for other jobs. It is very sad but the reality," he expressed.

The NGEP Chairman highlighted the cost advantages of gas alternatives, stating that CNG is priced at N125 per LCM against the N650 for petrol. He further lamented the disparity in petrol prices across different regions, emphasizing that Nigerians in some areas pay significantly more for the same product.

Ibrahim also emphasized the existence of a NGEP fund of N250 billion domiciled in the Central Bank of Nigeria (CBN) for the purpose of importing conversion kits and related products. However, he lamented the frustration encountered in accessing the funds.

The NGEP Chairman noted that the country would require over five million conversion kits, which in turn would create approximately 12.5 million jobs.

Source of content: OOO News 2023-08-28 News

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