Minister of state for petroleum RESOURCES, on Thursday, said there was plan by the federal government to create an alternative to premium motor spirit (PMS) popularly known as petrol which would bring the price of the product down to ₦97 Per litre.
The minister said the government intended to use the compressed natural gas (CNG) as an alternative to petrol, noting that such alternative will bring about drastic reduction in the pump price of PMS
CNG is a fuel that can be used in place of gasoline, diesel fuel and liquefied petroleum gas (LPG). It is used in traditional gasoline/internal combustion engine automobiles or specifically manufactured vehicles.
The minister who spoke during an interview with newsmen at his office in Abuja, said the the federal government was trying to end the heavy dependency on petrol.
He stated that common man would not realize that subsidy on PMS had been removed when they were hooked up on CNG.
“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.
“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 said he was hoping that the petroleum industry bill (PIB) would be passed by the national assembly before May, explaining that the dilly Dailly in the passage of the bill was a stumbling block to the progress of the petroleum industry.
“We are very ambitious about the PIB and we are hoping that it will pass before May this year which is the first anniversary of this administration and second tenure of this government,” he said.
“We are counting on the excellent relationship between the executive and the legislature but I must say that it is a hope and that is why I am mobilising the support of all of you. We are also mobilising the support of the national assembly and everybody else in the industry.
“Let us build a consensus around the PIB because the PIB has taken us back for too long, it has held us down for too long and we need to get it passed quickly. It is taking us a while to tidy up because we want to take every interest on board.”