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NNPC to construct 35 CNG stations as solution to hike in fuel prices



NNPC to constructs 35 CNG stations as solution to hike in fuel prices

In response to the hike in fuel prices in recent months, the Nigerian National Petroleum Company (NNPC) Limited has disclosed that it will construct 35 compressed natural gas (CNG) stations.

According to NNPC spokesperson, Garba Muhammad, who made this known in a statement on Thursday, the oil giant will collaborate with NIPCO Gas Limited for the construction of the CNG stations.

Muhammad said the purpose of the CNG stations was to serve as a cheaper alternative to Premium Motor Spirit (PMS), also known as fuel.

Recall that the price of fuel had skyrocketed to N500 per litre from N189 in June after President Bola Tinubu announced on May 29 that his administration will stop subsidising fuel.

The pump price was later increased by the NNPC to N580-N600 per litre across the country in July, with oil marketers projecting that the price of fuel could hit N700 per litre before the end of 2023.

Muhammad said the increase in CNG stations in Nigeria will expand access to the product and increase CNG-driven vehicles in the country.

“NNPC is happy to announce a strategic partnership with NIPCO Gas Limited to deploy compressed natural gas (CNG) stations across the country.

“This collaboration aims to expand our CNG infrastructure, improve access to CNG, and accelerate the adoption of cheaper and cleaner alternative fuel for buses, cars, and Keke NAPEP, which will significantly reduce the cost of transportation and engender sustainable national economic growth,” the statement reads.

READ ALSO:NNPC, private filling stations increase fuel prices, head towards N700

It was learnt that NIPCO currently has 14 CNG stations within the country and over 7,000 vehicles have been converted by the firm to run on CNG.

“Once fully operational, the stations can service over 200,000 vehicles daily.

“The first phase, comprising 21 CNG stations, will support intra-city transportation and be ready by the first quarter of 2024; while the second phase, comprising 35 CNG stations, will support inter-city transformation and will be ready by late 2024. This will be further complemented by an additional 56 stations to be deployed by NNPC Retail across the country.

“This initiative will leverage Nigeria’s abundant natural gas resources to bring multiple benefits to Nigerians, including access to cheaper fuel, reduced cost of transportation, reduced carbon emissions, create new business value chains and streams of job opportunities,” NNPC said in the statement.

Recall that Ripples Nigeria previously reported that CNG is one of the six post-subsidy palliatives proposed by the National Economic Council (NEC) to President Bola Tinubu.

Also, FG had approved 9,000 autogas filling stations after a surge in fuel prices and plans to invest N100 billion in 300 CNG vehicles from July to March 2024.

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