The Federal Government has again reiterated that it would crash the price of petrol by providing Compressed Natural Gas, which is estimated to cost N97 per litre as an alternative source of fuel for vehicles nationwide.
The CNG is a fuel that can be used in the place of Premium Motor Spirit, popularly known as petrol. It can also be used in the place of diesel and Liquefied Petroleum Gas.
Speaking on what the Federal Ministry of Petroleum Resources would work on this year during a press conference in Abuja, the Minister of State for Petroleum Resources, Timipre Sylva, stated that the Federal Government was working for the passage of the Petroleum Industry Bill before May.
He further stated that moves by the Federal Government to recover $62bn from international oil companies were seemingly impossible, as no such money was sitting anywhere to be harvested by the country.
Sylva further declared that the Nigerian oil and gas sector was retrogressing, particularly when compared to oil sector of other nations.
He stated that the use of petrol had caused serious drain on the finances of the Federal Government as a result of the continued subsidy on the commodity.
Explaining how the government intends to crash petrol price, Sylva said, “When you say we are thinking about reducing the pump price of petrol, I could easily say yes. Why I could say yes is because we are looking at giving the masses an alternative.
“Today, we are using the PMS but what we want to do, going forward, is to see that we are able to move the masses to the CNG. If we take all transport vehicles to the use of the CNG, you would have impacted the poor positively.”
Sylva said findings by government showed that the CNG cost less than the subsidised PMS and that once the CNG was fully deployed, the price of fuel would crash.
“The subsidised rate of the PMS per litre is N145 but the CNG cost between N95 to N97 per litre and that is why I said that we want to reduce the cost of fuel,” he stated.