Nigerians Rush To FG's Designated Locations For Free Conversion of Petrol Vehicles to CNG
- Commercial drivers are rushing to conversion centres in Abuja and others to convert their vehicles to use CNG
- FG aims to convert over one million commercial vehicles within the next year to reduce transportation costs
- CNG is a cheaper alternative, with refuelling costs for commercial vehicles as low as N200 compared to petrol at N700 per litre
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
More Nigerians are rushing to convert their vehicles from petrol and diesel to compressed natural gas (CNG).
The federal government has made the service free and subsidised for commercial vehicles and inaugurated several centres nationwide.
Source: Original
Legit.ng understands that conversion centres nationwide are witnessing increasing demand from vehicle owners.
An attendant at a CNG centre in Lagos said to Legit.ng:
“People are desperate. Petrol is almost N1,000 per litre. We’ve seen a significant increase in the number of vehicles coming in to refill their tanks in recent weeks."
A taxi driver, Johnson Ademola, told Legit.ng that since he converted his vehicle, he has been making more profit after each day's work.
"I was spending a fortune on petrol. I had to take out funds from my savings for the conversion. Although it was very expensive, now with CNG, I’m saving a lot more."
Kunle, another commercial driver at the CNG station, added:
“The initial cost of conversion is high, but it’s worth it in the long run.”
Despite the enthusiasm, the conversion process comes with challenges. The conversion cost, which ranges from N700,000 to N1.8 million, is discouraging some vehicle owners.
Additionally, the limited number of conversion centres and refuelling stations poses logistical difficulties.
Good news for commercial vehicle owners
To address these issues, the government has announced plans to subsidise conversion costs and increase the number of CNG refuelling stations.
Legit.ng reported that Michael Oluwagbemi, the programme director/chief executive of the presidential compressed natural gas initiative, announced that converting petrol and diesel-powered commercial vehicles to run on CNG will be free of charge.
He said commercial transporters under their different unions, including the Road Transport Employers Association of Nigeria, National Union of Road Transport Workers, and Nigerian Association of Road Transport Owners, would benefit from this.
The PCNGI director also disclosed that the second group of commercial transporters were the ride-share operators, Punch reports.
Read more on CNG initiative
- Full list: FG releases locations Nigerians can convert petrol cars for free to buy cheap fuel
- Nigerian company releases locations of its filling stations to buy fuel priced at N200
Dangote confirms petrol sales in August
Earlier, Legit.ng reported that Dangote, in a chat with journalists, confirmed that petrol production had already begun.
The billionaire also revealed that petrol sales to marketers would commence from August 2024.
The refinery is expected to help reduce petrol prices from the current rate of over N700.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
