Subsidy Removal: Oil Marketers Seek N250 Billion CBN Loan to Build 30,000 Gas Stations Across Nigeria
- Oil marketers have asked the Nigerian government to ask CBN to release funds for vehicles owners to fit gas converters into their vehicles
- The marketers said this as the federal government moves to end subsidies in June this year
- The marketers said they would build 30,000 gas stations across Nigeria for vehicles
Oil marketers in Nigeria have written to the Nigerian government concerning plans to build about 30,000 gas stations to alleviate the effects of the planned subsidy removal on petrol.
The countdown is on to June 2023, when the subsidy on petrol will be removed.
Source: Getty Images
Petrol to sell for N750/litre
According to reports, petrol may sell for about N750 per litre if the Nigerian government proceeds with the planned subsidy removal.
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Oil marketers in Nigeria have written to the Ministry of Finance to ask the Central Bank of Nigeria to release the N250 billion fund as loans for the National Gas Expansion Programme to vehicle owners to acquire gas conversion kits.
In the letter dated April 3, 2023, marketers stated they were poised to deploy gas dispensers to 30,000 filling stations nationwide.
The letter said:
“We are writing to request an audience with you to present a soothing solution to cushion the impact of the removal of the unsustainable petrol subsidy.
“Our partners, Gas Analytics & Solutions Ltd, have an agreement with the independent Petroleum Marketers Association of Nigeria to co-locate natural gas dispensers on our network of over 30,000 filling stations in Nigeria.
“This collaboration with IPMAN presents the most economical and expedient platform to deploy the necessary infrastructure to support a fast national roll-out of CNG (Compressed Natural Gas) for vehicles.”
The marketers said what is left is the support of the Central Bank of Nigeria to provide the required funding and access to the Gas Expansion Fund for vehicles, tricycles, and truck owners to access loans to finance the purchase of gas conversion kits.
CBN to release N250 billion for vehicle owners
The marketers said they had applied to CBN through NIRSAL microfinance bank for a collaboration to develop a finance programme for eligible Nigerians to access the gas expansion loan to convert their vehicles.
The marketers said:
“Without a large pool of CNG customers, IPMAN will be unable to raise funds required to set up CNG filling stations.
“We believe that with the support of the Ministry of Finance, IPMAN’s partnership with Gas Analytics will provide a platform that can cushion the impact of petrol subsidy removal in a matter of a few months and significantly reduce the need for foreign exchange to import petrol.
“We request an audience with you to discuss this further and present our proposal. We are looking forward to hearing from you soon. Thank you for your time and consideration,” the oil dealers stated through their umbrella association.
Fuel subsidy removal: Get ready to Bbuy petrol at N600 per litre, stakeholders warn Nigerians
Legit.ng reported that as the debate for and against fuel subsidy removal continues, experts in the sector have hinted that the pump price of petrol could go up as much as N600 per litre if the subsidy for the product is removed.
For decades, the has subsidized fuel and fixed retail prices of petroleum products. Despite rising global oil prices, Nigeria's fiscal deficit continued to widen in 2022, mainly due to the high costs it pays on fuel subsidies.
Interestingly, Nigeria's neighbour, Ghana, in March 2023, successfully removed fuel subsidies in the country. This follows 10 years of subsidy reforms and regulatory measures to ensure stability across its downstream sector.
Source: Legit.ng
