The Independent Petroleum Marketers Association of Nigeria recently announced that the price of petrol, also known as Premium Motor Spirit (PMS), is expected to decrease due to the entry of private investors into the oil sector. The association’s National President, Chinedu Okoronkwo, made this statement during a press conference in Abuja on Wednesday. Okoronkwo reiterated the association’s support for President Bola Tinubu’s decision to remove fuel subsidies and expressed optimism that this action would attract more private investors, thereby diversifying the downstream sector. He emphasized that once independent importation of petroleum products begins, the association’s strong membership would exert downward pressure on fuel prices. Furthermore, Okoronkwo announced that the association intends to adopt Compressed Natural Gas (CNG) as an alternative energy source to mitigate the impact of subsidy removal. He explained that CNG usage would address the issue of price fluctuations in the global petrol market, offering a superior and sustainable solution. During the meeting, IPMAN also agreed to revive the CNG conversion program, previously agreed upon with Labor centers in 2021, by formulating detailed implementation plans and timelines. CNG, which primarily consists of methane and produces fewer emissions, is known for its clean combustion and benefits such as reduced vehicle maintenance and prolonged engine life. Okoronkwo, a supporter of subsidy removal and the adoption of CNG, emphasized that the introduction of CNG as a cheaper alternative energy source would alleviate the burden on the government and its citizens. He stressed the necessity of subsidy removal due to the challenges posed by the preferential exchange rate for the dollar, as well as the absence of crude oil refining in Nigeria. Instead, Nigeria predominantly produces crude oil for export. Okoronkwo further highlighted that Nigeria possesses abundant reserves of CNG, especially in the Niger-Delta region where large quantities of gas are wasted through flaring. He urged the government to create a market for CNG and suggested that soft loans, similar to those provided by Egypt and India, could be granted to enable the acquisition of gas-powered vehicles, thus reducing reliance on petrol.
