CNG: Transport fare reduction by 40% reality amid petrol price hike

The Nigerian government has said that it is working hard to reduce the cost of Transportation by 40 percent with the expansion and implementation of the Compressed Natural Gas Initiative amid the recent hike in the price of Premium Motor Spirit (Petrol).

The Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi disclosed this during a Memorandum of Understanding signing in Abuja on Friday with representatives from the National Union of Road Transport Workers from Itakpe, Adavi, and Ajaokuta train station units and Ajaokuta train station units in Kogi State.

According to him, the CNG as the perfect alternative to petrol will crash transport fares as soon as more states embrace the initiative.

He stressed that with CNG, the transport fare price from Abuja to Ajaokuta which stood at N12,000 will be reduced to N7,000 per passenger.

“We are working hard to bring transportation prices down, especially during these challenging times. Mr President has introduced a great alternative to the petrol problem—compressed natural gas.

“Specifically, the trip from Itakpe Station to Warri costs N5,000, showcasing the benefits of our infrastructure investments over the past five years.”

“This represents a significant savings of percentage. Passengers traveling from Abuja to Ajaokuta Station will greatly benefit from Mr President’s intervention,” he added.

This comes as he noted that ten CNG conversion stations have been established in Abuja by the Nigerian National Petroleum Company Limited and NIPCO.

According to him, an additional 17 conversion stations will be rolled out across the Country by the end of 2024.

“We have partnered with Matrix Energy to establish five new stations in Delta and Abuja. NNPC has completed six stations in Abuja, with six more expected in Lagos by October,” Oluwagbemi stated.

The development comes as Nigerians groan over the price of Petrol which stood between N950 and N1,100 across the Country.

Meanwhile, President Bola Ahmed Tinuad established CNG in August last year to cushion the impact of the petrol hike.

In May, 2024 Tinubu commissioned 20 CNG buses.

However, Nigerians have not yet seen the full impact of the CNG initiative as the cost of transport remained high according to the National Bureau of Statistics August data.

CNG: Transport fare reduction by 40% reality amid petrol price hike – Nigerian Govt