The Minister of State for Petroleum Resources, Timipre Sylva, on Thursday said that the Federal Government was planning on making fuel available at N97 per litre, using the compressed natural gas (CNG) as an option to premium motor spirit (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.
Fielding questions from reporters at his office in Abuja, the minister said the common man would not notice that subsidy on PMS has been removed when they have CNG as an option.
He said, “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.
“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.”
Sylva said he also expressed hoped that the Petroleum Industry Bill (PIB) will be passed by the National Assembly before May.
“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.
“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,” he stated.