Discounted CNG Prices: Tinubu Government Strikes Favorable Deal For Consumers

Discounted CNG Prices: Tinubu Government Strikes Favorable Deal For Consumers....KINDLY READ THE FULL STORY HERE▶

The Nigerian government has unveiled a new pricing scheme for Compressed Natural Gas (CNG) aimed at enhancing mobility. Michael Oluwagbemi, Director/CEO of the Presidential Compressed Natural Gas Initiative (PCNGI), revealed this development in a statement issued on Tuesday.

Oluwagbemi explained that the initiative successfully negotiated discounted pricing with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as confirmed in a letter dated April 20 from its CEO, Farouk Ahmed.

Under this arrangement, mobility CNG has been accorded special status within the gas-to-commercial (GTC) framework by NMDPRA. This designation qualifies it for Gas-Based Industry (GBI) pricing, initially for a five-year period, extendable for another five years as per the provisions of the Petroleum Industry Act (PIA) 2021.

The GBI pricing, pegged at $1.57 per one million thermal units (MMBtu), represents a significant reduction compared to the standard rates of $2.42 and $2.92 for Power and Commercial buyers, respectively.

Oluwagbemi emphasized the importance of this concession, highlighting its potential to boost investor confidence and stimulate commercial activities in the emerging CNG market. He urged stakeholders to capitalize on the favorable pricing model for Mobility CNG, aligning with the government’s vision for a gas-driven transportation sector championed by President Bola Ahmed Tinubu.

President Tinubu had previously announced plans to introduce CNG buses as part of measures to mitigate the impact of fuel subsidy removal. With preparations underway to roll out 2,700 CNG buses, the government aims to launch the initiative before May 29, 2024.

This development marks a significant step towards realizing a cleaner, more affordable, and sustainable energy ecosystem, in line with Nigeria’s economic aspirations.

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