According to the Federal Government, the transition from using Premium Motor Spirit (petrol) to autogas will lead to monthly savings of approximately N1.84 trillion for commercial vehicle operators in Nigeria.
This information was provided in a document prepared by the Nigerian Institute of Transport Technology (NITT), which highlighted that a typical commercial Uber car could save N274,176 per month by using autogas instead of petrol.
The document, titled “Autogas Conversion – NITT Initiative and Strategy,” was obtained during a stakeholders’ engagement forum focused on autogas as an alternative fuel for transportation in Nigeria.
Autogas fuel can be either Liquefied Petroleum Gas (LPG) or Compressed Natural Gas (CNG) and undergoes a transformation from a gaseous to liquid state when compressed at moderate pressure or chilled.
The transport institute’s report indicated that Nigeria has an estimated 12 to 20 million vehicles, with 57 percent of them being used for commercial purposes. By considering the lowest figure of 12 million vehicles, approximately 6,840,000 vehicles could save about N1.84 trillion every month if they switch to running on autogas, based on the calculated monthly savings of a typical commercial Uber car.
Since the removal of petrol subsidies, stakeholders in the transport and oil sectors, including oil marketers, have been seeking ways to reduce the high costs associated with fuel. The removal of subsidies led to a significant increase in petrol prices, rising from N198 per litre to over N500 per litre.
The NITT highlighted that the deployment and usage of autogas, advocated by oil marketers, would significantly reduce the expenses incurred by motorists for petrol. Currently, the majority of vehicles in Nigeria operate on petrol.
