FG  rolls out CNG kits as petrol, diesel expenditure hovers around N3tr in March

Adebayo Obajemu 

As the Middle East crisis worsens leading to global disruption in energy needs and supply, and with  the United States threatening the ‘most intense day’ of the war and Iran equally vowing revenge, Nigerians are projected to spend close to N3 trillion on petrol and diesel in March as fuel prices remain  high  despite a sharp 87.9 per cent drop in petrol importation.

 The  Tinubu administration has assured the populace, saying Federal Government  is closely  watching the conflicts to ensure the economy is not adversely affected.

To ensure that the federal government mitigate what the effect of whatever global disruption to energy economies of countries,  the Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, convened a meeting to assess the impact on the economy in Abuja Tuesday.

The team noted that the government remains committed to  protecting Nigeria’s economic stability. Also, the Minister chaired a Naira-for-Crude policy coordination meeting to review energy market developments and their domestic implications.

The team noted that  the situation remains uncertain and fluid, with global market uncertainty driven by concerns over disruptions to critical energy supply routes, particularly the Strait of Hormuz, already contributing to volatility in crude oil prices and financial markets.

With the fuel price hike, about N2 trillion is expected to be spent on Premium Motor Spirit (PMS) from the consumption of 56.9 million litres of fuel, according to data from the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), which translates to N70.8 billion daily or N2.1 trillion for the month.

A development, which  has shown record consumption cost, as homes and businesses will also spend about N1.1 trillion on consuming 20.3 million litres of diesel at the rate of average price of N1,725 per litre.

Figures released by the NMDPRA indicate that the country consumed about 56.9 million litres of petrol daily in February, while diesel consumption averaged 20.3 million litres per day. At the current average diesel price of around N1,725 per litre, spending on diesel could exceed N1 trillion within the month, pushing combined expenditure on both fuels close to N3 trillion.

The development comes amid a dramatic contraction in petrol imports into the country, as the NMDPRA February factsheet released yesterday showed that PMS importation fell from 24.8 million litres per day in January to about three million litres per day in February, representing an 87.9 per cent reduction.

Tuesday , President Bola   ordered the immediate nationwide deployment of about 100,000 Compressed Natural Gas (CNG) conversion kits as part of measures to mitigate  the  effect  of rising fuel prices on Nigerian commuters following the escalation of the conflict in the Middle East. The directive forms part of the Federal Government’s broader strategy to expand alternative energy options and reduce transportation costs amid the surge in global oil prices triggered by the ongoing United States-Israel war with Iran.

Executive Chairman of the Presidential Initiative on Compressed Natural Gas (Pi-CNG), Ismaeel Ahmed, disclosed the President’s directive on Tuesday while briefing journalists at the State House, Abuja, after a meeting with Tinubu. Ahmed said the President has been closely monitoring global developments and their implications for Nigeria’s energy costs, particularly the impact of the Middle East crisis on petrol and diesel prices.

According to him, Tinubu directed the Pi-CNG initiative to accelerate the rollout of CNG infrastructure and alternative mobility solutions nationwide. He revealed that the President has specifically mandated the immediate deployment of about 100,000 CNG conversion kits within the next few weeks.

Ahmed explained that the kits, to be distributed through partnerships with multiple stakeholders, will enable vehicle owners, including commercial transport operators and tricycle riders, to convert their vehicles from petrol to gas.

Ahmed disclosed that about 77 CNG refuelling stations are currently at various stages of development nationwide. He cited Kano as an example where two Liquefied Compressed Natural Gas (LCNG) stations are already operational, while several “daughter stations” are under construction.

According to him, the government is planning a chain of refuelling facilities along major transport corridors stretching from Lokoja through Abuja, Kaduna, Zaria and Kano up to Maiduguri.