By Tobi Adeleye, Abuja
Oil marketers have expressed concerns that the recent decline in the pump price of Premium Motor Spirit (PMS), otherwise known as petrol, could discourage vehicle owners from converting to Compressed Natural Gas (CNG), potentially slowing the Federal Government’s drive towards cleaner and cheaper transportation alternatives.
The marketers noted that while the reduction in petrol prices has brought temporary relief to motorists and businesses grappling with high transportation costs, it may weaken the economic incentive that initially drove interest in CNG-powered vehicles following the removal of fuel subsidy.
Industry operators observed that many vehicle owners embraced CNG conversion primarily because of the significant price differential between petrol and gas. However, with petrol prices showing signs of moderation, some motorists may reconsider plans to convert their vehicles or continue investing in alternative fuel technologies.
Speaking on the development, marketers said consumer behaviour is largely influenced by cost considerations, stressing that sustained reductions in petrol prices could affect the pace of CNG adoption across the country.
According to them, the government’s ongoing investment in CNG infrastructure, including conversion centres and refuelling stations, remains critical to ensuring long-term acceptance of the alternative fuel regardless of fluctuations in petrol prices.
They maintained that while petrol prices may experience short-term declines, CNG still offers substantial savings for high-mileage users, commercial transport operators and fleet owners over the long term.
The stakeholders urged policymakers to sustain incentives designed to encourage vehicle conversion, including access to affordable conversion kits, financing support and expansion of gas distribution infrastructure.
The marketers also noted that Nigeria’s abundant natural gas reserves provide a strategic advantage that should be fully leveraged to reduce dependence on imported petroleum products and lower transportation costs.
Despite concerns over a possible slowdown in conversion rates, industry experts insisted that the transition to gas-powered transportation remains economically viable and environmentally beneficial, particularly as countries around the world increasingly embrace cleaner energy sources.
They added that achieving the government’s energy transition goals would require policy consistency, public awareness campaigns and continued investment in supporting infrastructure to build confidence among motorists and investors.
The renewed debate comes amid ongoing adjustments in the downstream petroleum sector, where increased competition among marketers and improved local refining capacity have contributed to recent movements in petrol prices across the country.
