The Federal Government of Nigeria estimates that commercial vehicle operators in Nigeria can save N1.84tn per month by switching from using Premium Motor Spirit, also known as petrol, to autogas.
The Nigerian Institute of Transport Technology published a study showing that an average commercial Uber car could save N274,176 a month by switching to autogas instead of petrol.
The PUNCH got the paper on Tuesday in Abuja, at a one-day stakeholders’ engagement conference that focused on autogas as an alternative fuel for transportation in Nigeria. The document is titled “Autogas Conversion – NITT Initiative and Strategy.”
Autogas fuel, also known as LPG or CNG, is a mixture of hydrocarbons that solidify when compressed at moderate pressure or cooled, hence the name.
The new analysis from the transport institute estimates that there are between 12 and 20 million vehicles in Nigeria, with 57% of them being used for business.
It stated, “Taking the lowest figure of 12 million vehicles, 57 per cent of this number is 6,840,000. When multiplied with the over N270,000 which a typical commercial Uber car could save monthly if run on autogas, it implies that the 6.84 million transporters could save about N1.84tn every month if they run their vehicles on autogas.”
The discontinuation of the subsidy caused the price of petrol to skyrocket from N198 per litre to more than N500 per litre at the pump, prompting oil marketers and other stakeholders in the transportation and oil sectors to come up with strategies to mitigate the present high cost of fuel.
