Omolabake Fasogbon
Given the skyrocketing petroleum prices and the attendant consequences on the populace, the Nigerian government recently found respite in Compressed Natural Gas (CNG) to cushion the impact of exorbitant fuel price on Nigerians.
The price of petrol has soared by roughly 488 per cent, climbing from N175 to over N1,000 since the new government assumed office in 2023.
CNG solutions came timely, while Nigerians have not delayed to embrace the innovation said to be about 40 to 60 per cent cheaper than petrol or diesel. Users have been testifying to its efficiency.
Far from its affordability, CNG is proven to be environment-friendly, minimal maintenance expenses, and enjoys government’s incentives, amongst others.
Speaking on the gains of CNG at a stakeholders’ engagement meeting, Programme Director, Presidential Initiative on CNG, Michael Oluwagbemi said, “It has the capacity of reducing inflation. It is cheaper. You can realiSe between 40 per cent to 50 per cent savings from petrol. This is good for Nigeria and it is safer. It is 18 times safer than petrol and diesel. It is cleaner and safer for the environment. “
On the broader scene, Oluwagbemi added that Nigeria would be saving up to 6,000,000 litres daily and about $2.5 billion yearly from every one million vehicle converted to CNG.
Although, the gains may not immediately spread to commuting public as commercial transporters take time to adjust their charges to recoup conversion cost that presently runs into a million, the innovation offers lot more long- term security for vehicle owners and businesses.
Notwithstanding these dividends, this invention can yet spell doom for users, given its technology and newness in this environment.
The recently exploded CNG-powered vehicle in Edo state, injuring several is one incident that readily comes to mind
Concerns such as limited range and fueling infrastructure, high upfront costs, infrastructure cost and safety issues are been raised about the innovation and depending on users’ approach, can likely defeat its fiscal gains or do worst more.
Getting the best of this innovation requires being strategic. Some of the tips are provided below:
Strategic Vehicle Selection
Not all vehicles are suitable for CNG conversion. Consider vehicles with high mileage potential, such as commercial buses, taxis, or delivery trucks. The higher the mileage, the faster you will recoup your initial investment.
Route Optimisation
Plan your routes strategically to minimise fuel consumption. Avoid unnecessary idling and aggressive driving. Efficient route planning can significantly impact your fuel economy and profitability. Consider using GPS tracking and route optimisation software.
CNG Infrastructure Awareness
Before committing to CNG, thoroughly research the availability of CNG filling stations along your regular routes. Running out of fuel can lead to significant downtime and lost revenue. Plan your routes carefully, ensuring access to reliable CNG refueling points.
Maintenance and Upkeep
Regular maintenance is crucial for maximising the lifespan and efficiency of your CNG vehicle. Follow the manufacturer’s recommended maintenance schedule and address any issues promptly. Investing in preventative maintenance will save you money in the long run.
Driver Training
Train your drivers on fuel-efficient driving techniques specific to CNG vehicles. Proper driving habits can significantly impact fuel consumption and vehicle longevity. This training should cover aspects like smooth acceleration, consistent speeds, and anticipatory driving.
Explore Government Incentives
The Nigerian government currently offers subsidies for CNG vehicle adoption. Research available programs and explore opportunities to reduce your initial investment costs.
Market Analysis
Conduct thorough market research to understand passenger demand and pricing strategies in your area. Adjust your fares strategically to remain competitive while ensuring profitability.
Diversification
Don’t put all your eggs in one basket. Consider diversifying your services to cater to different market segments. For example, a CNG-powered bus company could offer both regular routes and charter services.
Accurate Record Keeping
Maintain meticulous records of fuel consumption, maintenance costs, and revenue generated. This data will help you track your profitability and identify areas for improvement.
Stay Updated
The CNG industry is constantly evolving. Stay informed about new technologies, regulations, and market trends to maintain a competitive edge. Additionally, the Standards Organisation of Nigeria (SON) advised on subscribing to standard and certified CNG equipment and conversion kits to pull ahead.
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