FG to reduce price of petrol to N97

Timipre Sylva, the minister of state for petroleum resources has disclosed that the Federal Government is working on providing an alternative petrol through compressed Natural Gas (CNG).

The minister said the CNG has passed through a pilot project in the city of Benin where over 10, 000 vehicles are running on it.

Sylva made the disclosure in Abuja when he was asked whether the Government will reduce the pump price of premium motor spirit (PMS) to make more affordable to Nigerians.

He noted that with CNG the price of petrol will be as low as N95 to N97.

“If we are thinking of reducing pump price for fuel? I could easily say yes and I’m sure all of you wonder why I am saying that,” he said. “We are thinking of giving the masses an alternative. Today we are all hooked on PMS, what we want to do going forward is to see that we are able to move the masses to CNG gas.

He said Nigerians will not notice it when the Subsidy on PMS is removed with CNG at N97.

CNG unit for unit costs less than even the subsidised PMS. Per litre the subsidised rate of PMS is N145/l. CNG will cost N95 to N97/l that is why I could say we want to reduce the cost of fuel, that way when we are given an alternative Nigerians will not notice when the subsidy on PMS is removed.”

The minister is hopeful that the Petroleum Industry Bill (PIB) will be passed by the National Assembly before may, 2020.

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