The National LPG Association Nigeria Liquefied Petroleum Gas Association (NLPGA) has proposed an incentive-driven policy to drive autogas conversion initiative.
NLPGA made the proposal as it announced the association’s 13th International Conference and Exhibition holding in November at the Petroleum Technology Development Fund (PTDF) Towers, Abuja.
According to a joint document by NLPGA, Nigeria Gas Association (NGA), Lagos Chamber of Commerce and Industry (LCCI) LPG Group and Association of Local Distributors of Gas (ALDG), the conversion cost for petrol vehicles is between N300,000 to N400,000 with a saving cost of N40 per km while a tricycles (four-stroke engine) costs N100,000 to N200,000 with a saving cost of N10 to N15 per km.
The association urged government to take action and implement proposed palliative incentives to drive autogas conversion, including duty, levy and VAT waiver for vans and lorries.
The association believes that such incentives would help to make autogas more accessible and affordable to consumers while also helping to reduce emissions and fuel costs.
President, NLPGA, Felix Ekundayo, said the advantages of LPG usage are not only finance-based but also environmentally driven with LPG generating less carbon-dioxide and nitrogen-oxide emissions than petrol and diesel engines.
He stressed that Nigeria has a gas advantage, with about 206 trillion cubic feet of gas reserves. He urged government to tap into gas as cheaper fuel for transportation by augmenting the conversion for at least one million vehicles, two million tricycles and five million generators over the next three months.
