The Independent Petroleum Marketers Association of Nigeria, IPMAN, has urged the Central Bank of Nigeria, CBN, to release the N250 billion Vehicle Gas Conversion Kits intrvention fund.
The fund was set up by the federal government last year for vehicle owners in the country to convert their petrol or dissel powered vehicles to gas powered automobiles, ahead the removal of petrol subsidy in June this year.
Since the fund was set up under with the CBN as the vehicle, not much has been heard about it, raising suggestions among Nigerians that the government is not serious about the plan.
Serious questions have also been raised on the sincerity of the government on the removal of the subsidy even as fears continue to loom that the price of the product, post subsidy will be beyond the reach of many Nigerians.
Some energy experts have suggested that petrol could be sold by as much as 1000 per litre after subsidy has been removed.
But IPMAN in a letter to the Minister of Finance and Budget, Zainab Ahmed said the vehicle gas conversion project will go a long way to cushion the effect on Nigerians after it has been removed.
On its part, the petroleum marketers said it is prepared to build 30,000 gas station to complement government’s efforts, they also requested to meet with the Minister to fasttrack the plan.
Part of IPMAN letter eads: “We are writing to request an audience with you to present a palliative solution to cushion the impact of the removal of the unsustainable petrol subsidy.
“Our partners, Gas Analytics & Solutions Ltd, have an agreement with the independent Petroleum Marketers Association of Nigeria to co-locate natural gas dispensers on our network of over 30,000 filling stations in Nigeria.
“This collaboration with IPMAN presents the most economic and expedient platform to deploy the necessary infrastructure to support a fast national roll-out of CNG (Compressed Natural Gas) for vehicles.”
“Furthermore, CNG emits 30 to 60 per cent less Green House Gases than petrol and diesel, making it more appealing to attracting additional financing from international and regional developmental finance institutions that are disposed to supporting natural gas utilisation.
“What is left is the support of the Central Bank of Nigeria to provide access to the Gas Expansion Fund for vehicles, Keke, and truck owners to access loans to finance the acquisition of natural gas conversion kits,” the marketers said.
IPMAN however stated that more vehicle owners will need to be brought on board in other to insentivise members to build gas stations.
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