Petrol Marketers to Commence Sale of Cheaper Fuel, Give Timeline as Diesel Nears N2,000/Litre

• Independent marketers in Nigeria would commence the sale of cheaper fuel as an alternative to petrol and diesel
• IPMAN said its members are ready to commence the sale as it is already in talks with the Nigerian government
• The marketers revealed that trucks would be converted to CNG-powered vehicles to achieve the objective

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have said they are already in talks with the Nigerian government to begin the sale of compressed natural gas in their filling stations nationwide.

IPMAN vice president, Hammed Fashola, said that marketers’ filling stations would serve as CNG refilling centres to hurry up gas adoption in Nigeria.

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FG will move to CNG as alternative

With the removal of the petrol subsidy, the Nigerian government has touted investing in gas as a cheaper and cleaner alternative to petrol and diesel.

The unavailability of CNG stations across the country has been a significant setback to the government’s gas initiative.

Fashola noted that marketers met with the federal government to find ways to make the product available to Nigerians.

IPMAN has over 80% of the filling stations across Nigeria. Punch quotes Fashola as saying that many independent marketers already sell cooking gas in their stations, stating that CNG is the next move for marketers.

Truck to be converted to CNG vehicles

He said trucks would be converted from diesel to CNG-powered engines, while kits would also be available.

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Fashola said:

“And if we have CNG, it is an alternative to petrol and diesel. It will be cheaper, and people will have an option. That is why we said let’s go for CNG,” he stated.

Marketers to sell CNG kits

The IPMAN vice chair said the association’s members want to sell CNG and kits as they currently sell petrol at the filling stations.

Per Fashola, seminars are being held on how to make the distribution process smooth.

“When you enter a filling station, you can go for whatever you want, either petrol or CNG,” he averred.

The development comes amid an increase in the price of diesel, which has risen to about N1,710 per litre in some filling stations in Nigeria.

The unreliable power supply from the national grid has forced firms across Nigeria to depend on diesel generators to keep their operations afloat.

Meanwhile, the price of diesel products is now making diesel use unsustainable for many businesses.

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According to surveys across filling stations in Lagos, marketers sold the product at various prices, between N1,690 and N1.710 per litre, depending on the marketer.

Reports say that in Abuja, filling stations sold the product at various prices ranging from N1,500 to N1,710 per litre.

Analysts say the impact of the high cost of diesel on businesses is devastating as the price is ultimately passed onto the consumer.

BusinessDay reports that an official of the Manufacturers Association of Nigeria (MAN) said that the hike in diesel prices is a serious issue.

Petroleum marketers speak on fuel prices in Nigeria

Legit.ng earlier reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) reiterated that there was no plan to increase the cost of premium motor spirit (PMS), popularly called petrol.

In a statement on Monday, January 8, 2023, the marketers said the Nigerian National Petroleum Company Limited (NNPCL) remains the sole importer of the commodity and can determine the pump price alone.

Source: Legit.ng