In recent months, Nigeria has witnessed significant changes in fuel pricing, with motorists and households feeling the brunt of these fluctuations. The rising cost of Premium Motor Spirit (PMS), commonly known as petrol, has sparked public outcry, further fuelled by a recent statement from President Bola Ahmed Tinubu suggesting that Nigerians may soon need to pay as much as ₦1,000 per litre for PMS, or alternatively, shift to Compressed Natural Gas (CNG) at a much lower price of ₦200 per litre.
This price disparity has brought to the forefront the Federal Government’s “Decade of Gas” initiative, which aims to transition Nigeria from heavy reliance on PMS to CNG and other cleaner energy sources. As fuel prices continue to rise, Nigerians are left grappling with the costs of keeping their vehicles running and evaluating whether a shift to gas-powered alternatives is a feasible solution.
How Much Does It Take to Fill a Full Tank?
The question on every motorist’s mind is how much it now costs to fill a full tank of petrol. With the current average price of PMS hovering around ₦1000 to ₦1,500 per litre, filling a typical 50-litre fuel tank can cost anywhere from ₦50,000 to ₦75,000. For larger vehicles or those with tanks exceeding 60 litres, the cost could rise to ₦80,000 or more. This marks a substantial increase compared to prices earlier in the year, which were much lower before the fuel subsidy removal and global oil price fluctuations.
President Tinubu’s Statement: ₦1,000 for PMS or ₦200 for CNG
President Tinubu’s recent comments have highlighted a potential future where PMS could reach a staggering ₦1,000 per litre if Nigeria continues to rely on petrol imports amidst global market instability. This prediction has alarmed many Nigerians, particularly given the widespread dependence on petrol for transportation, generators, and industrial use. The President has, however, pointed to an alternative: CNG, which could be available at around ₦200 per litre.
CNG, a cleaner and cheaper fuel, is increasingly being promoted as a viable alternative to PMS. In fact, the government has already begun rolling out incentives and infrastructure development under the Decade of Gas initiative to encourage the transition. For the average Nigerian motorist, converting a petrol vehicle to CNG could reduce refuelling costs significantly, making the switch a more cost-effective long-term solution.
The Decade of Gas Initiative: A Push for Energy Transition
The Decade of Gas initiative, launched in 2020, seeks to position Nigeria as a gas-powered economy by 2030. As Africa’s largest producer of natural gas, Nigeria has vast untapped resources that could reduce the country’s dependence on imported petrol. The initiative promotes the use of CNG for vehicles, Liquefied Petroleum Gas (LPG) for cooking, and gas for industrial purposes.
The government hopes that by making CNG more accessible and affordable, it can ease the burden of rising fuel prices on Nigerians, while simultaneously addressing environmental concerns by promoting cleaner energy sources. The transition to gas, however, requires significant investment in infrastructure, vehicle conversion kits, and public awareness campaigns to make it a practical and scalable solution for the majority of the population.
How Do the Fuel Price Increases Affect the Average Nigerian?
The rising cost of fuel has a direct impact on the cost of living in Nigeria. Transportation fares have surged, as have the prices of goods and services. Many Nigerians rely on petrol-powered generators for electricity due to the country’s inconsistent power supply, further increasing household expenditure on fuel.
For the average Nigerian, the jump from ₦600 to ₦1000 per litre for PMS to a potential ₦2,000 is a cause for concern. A shift to CNG at ₦200 per litre, on the other hand, could offer much-needed relief. However, the challenge lies in the upfront cost of converting vehicles to run on CNG, which many may find prohibitive without government subsidies or incentives.
The Way Forward: A Call for Policy Reform and Support
As fuel prices continue to rise, the government’s push towards alternative fuels, particularly CNG, appears to be the most sustainable way forward. However, for this transition to succeed, significant reforms and support are necessary. The Federal Government must accelerate the implementation of the Decade of Gas initiative, ensuring that CNG stations are available nationwide, particularly in rural areas where access to fuel is limited.
Furthermore, financial support in the form of subsidies, tax incentives, or loan schemes for vehicle owners to convert to CNG must be provided. Without such measures, the majority of Nigerians may struggle to make the switch, leaving them vulnerable to future fuel price hikes.
The cost of filling a full tank of petrol in Nigeria has become a major financial burden for motorists, with prices set to rise even further if PMS reaches the predicted ₦1,000 per litre. While the government’s push for CNG at ₦200 per litre offers a potential solution, the transition will require significant infrastructure investment and policy reform to be truly effective.
As Nigeria moves forward with its Decade of Gas initiative, the success of this plan will depend on how quickly and effectively the government can implement its strategies to make CNG a viable and accessible alternative for all Nigerians. The road ahead is challenging, but with the right policies in place, Nigeria can reduce its dependence on PMS and pave the way for a more sustainable and cost-effective energy future.
