Page 17 - DMEA Week 37

DMEA NEWS IN BRIEF DMEA

Nigeria hikes gasoline government has already begun pairing 16 that it remains committed to its expansion
Also, it was gathered that the
plans despite the challenges posed by the
price, but CNG is cheaper private sector companies that will provide coronavirus pandemic and will be opening a
total of 40 additional service stations across
conversion kits and refueling systems.
As Nigerians groan over the recent increase Also, it was gathered that there are over the country by the end of next year.
in price of premium motor spirit (gasoline), 30 auto-gas refueling locations currently The first tranche of the expansion will
the federal government assured yesterday available to fuel either CNG or LPG involve the opening of 16 service stations in
that the introduction of compressed natural nationwide. in Dubai, Sharjah and the northern emirates
gas (CNG) will cushion the effect of the Industry watchers say it costs between by the end of 2020, while the remaining 24
price hike. NGN100,000 and NGN300,000 to convert outlets will open by the end of 2021.
Minister of State for Petroleum a car from gasoline or diesel engine to a This will bring the company’s retail
Resources, Timipre Sylva, said that CNG, an CNG engine, depending on the nature and network to 192 stations.
alternative to gasoline, is 40%cheaper than condition of the car. Markets around the world have seen
gasoline. Thus, the conversion would result in up significant declines in demand for fuel this
Highlighting the economic benefits of to 40% savings in energy cost for car owners year, particularly during the coronavirus
CNG, the minister noted that Nigerians will and motorists. lockdown. As of May, motor gasoline
not feel the impact of the recent increase in The use of CNG is to replace fuel demand posted a 44% fall over the previous
pump price of gasoline. consumption and reduce excess spending weeks, while jet fuel demand also dropped by
According to him, the federal on imported fuels by providing alternatives 62 percent.
government has concluded plans to to gasoline, diesel and kerosene. According to ENOC, the company
introduce the CNG by the end of October. It is also expected the create millions of remains resilient despite the crisis and that it
The minister urged motorists to go for direct and indirect jobs across the country. is on track to meet its expansion targets.
conversion of their vehicles from gasoline To this effect, in January, 2020, the “The Group is on track with its
to gas-run engine, adding that the federal Committee on National Gas Expansion [expansion plans],” the company said in a
government will ensure that the conversion Programme (NGEP) was inaugurated by the statement.
will be done free of charge for all Nigerians Minister. Saif Humaid Al Falasi, group CEO
to cushion the effect of the hike in pump To support the introduction of CNG into of ENOC, said they are committed to
price of gasoline the Nigerian market, fuel station regulations developing a “robust retail infrastructure to
LEADERSHIP recalls that Sylva had have been revised by the Department of serve the UAE for the next five decades”, in
announced that CNG will cost between Petroleum Resources (DPR). accordance with the vision of His Highness
NGN95 and 97 per litre, which is cheaper The Nigerian National Petroleum Shaikh Mohammad bin Rashid Al Maktoum,
than the rate of PMS currently pegged at Corporation (NNPC) is set to deploy CNG UAE vice president, prime minister and ruler
NGN162 per litre. refueling equipment into 10 of its stations of Dubai.
While making a presentation during a before the end of September. “Our promise is to ensure that customers
meeting with government delegation and In a document titled “Nigerian Gas have access to an uninterrupted supply
Labour, Sylva said Nigeria lost an average of Transportation Network Code (NGTNC)”, of fuel as well as access to best-in-class
NGN1bn daily between 2016 and 2019 as a it stated that plans have reached advanced automotive and retail services. Despite the
result of fuel subsidy and NGN3.74bn daily stage for the development of Autogas in challenging times, we have demonstrated our
before 2016. NNPC-owned and operated mega stations resilience and remain committed to serve the
He also noted that Nigeria lost NGN10.4 in the 36 states and the FCT. nation,” Al Falasi said.
trillion to fuel subsidy between 2016 and The document also added that these The upcoming ENOC outlets will have
2019 filling stations will offer a full complement Zoom stores, which offer customers more
The minister said Nigeria’s economy had of gas products for motorists in addition to than 7,500 products including confectionary
not been well for a while now, adding that it existing fuel products. and snacks, as well as hot and cold beverages.
has become incumbent on all to join hands On June 30 2020, President Muhammadu The Group also unveiled plans to build
to see how to salvage the situation. Buhari had launched the $2.8bn 614-km two marine stations at Dubai Harbour and
According to him, every successive Ajaokuta-Kaduna-Kano (AKK) natural Umm Suqeim to serve the fueling needs of
administration in country had come to gas pipeline in Ajaokuta, Kogi State and boat and yacht owners.
realise that subsidy was not good for the Rigachikun area of Kaduna State.
economy but having the political will to The expectation is that it would further
implement deregulation policy has been the improve gas supply nationwide as the gas Syria says US sanctions
problem. pipeline is expected to boost domestic
He said that despite recent move by gas consumption, power generation, and behind acute fuel crisis
federal government to introduce market industrialization.
pricing of fuel, Nigeria has not fully Syria is experiencing worsening gasoline
deregulated because of the concerns the shortages as a result of tougher US sanctions
government has for the people. UAE’s ENOC to open 40 new disrupting crucial fuel imports, its oil minister
Sources had said the plan for CNG was said Wednesday, the latest crisis to hit the war-
to commence conversion of cars from service stations despite devastated country’s crumbling economy. The
petrol-run engines to CNG-run engines in Caesar Act - the toughest US sanctions which
a sequenced approach, with the conversion COVID-19 slowdown came into force last June prohibiting foreign
of public transport systems through the companies trading with Damascus - had
transport companies. UAE’s fuel retailer ENOC said on September disrupted several imported shipments from

Week 37 17•September•2020 www. NEWSBASE .com P17