The Public and Private Development Centre (PPDC) has said that Compressed Natural Gas (CNG), as an alternative to petrol by the government of Nigeria, is a welcome development.
Development Diaries reports that the President Bola Tinubu administration and labour unions in the country are considering an alternative to the use of petrol by Nigerians to cushion the effect of the removal of fuel subsidy.
Commercial drivers across many cities in the country, including Abuja, have increased their fares as one litre of Premium Motor Spirit (PMS), popularly called petrol or fuel, is now at least N488 nationwide.
Transport fares have jumped by over 100 percent, depending on the routes, as Nigerians lament the high cost of the product.
CNG is a fossil fuel substitute for gasoline (petrol), diesel fuel, or propane. According to experts, it brings about less vehicle maintenance and longer engine life.
‘If we are talking about inflation, we are talking about a cost of not more than N170 compared to N500 now depending on where you are in Nigeria’, the News Agency of Nigeria (NAN) quoted the Chief Executive Officer of PPDC, Shittu Jubril, as saying.
Jubril called for faster implementation of the alternatives to cushion the effect of subsidy removal on the citizens.
He said that the government should make credit facilities with long-term repayment rates available for the citizens to access, provide alternative transport mechanisms, health care and address the cost point.
‘We are talking about 130 million Nigerians living below the poverty line globally; this is something we should ensure we are considering while making these decisions’, he said.
‘We are talking about increasing the minimum wage but we are not also looking at what is the average cost point for the average Nigerian.
‘The average Nigerian is facing inflation of almost 24 percent; he is facing a consumer pricing index of almost 25 percent, and food prices are set to increase’.
In his inaugural speech, President Tinubu affirmed that his administration would not continue to pay subsidy on PMS, adding that there was no provision for it in the 2023 Appropriation Act from June.
The 16th Nigerian leader and the country’s seventh president also said that given the high opportunity cost, the federal government was suffering to fund subsidies.
Photo source: Rama
