Oil marketers seek access to N250bn gas intervention fund ahead of subsidy removal

The Independent Petroleum Marketers Association of Nigeria (IPMAN) have written to the Federal Government seeking for access to the N250 billion intervention fund for the National Gas Expansion Programme.

IPMAN, in a letter dated April 3, 2023, requested that the government should urge the Central Bank of Nigeria (CBN) to release the N250 billion as loans to vehicle owners.

The oil marketers said the N250 billion can be used by car, tricycle and truck owners to convert to gas due to the projected hike in Premium Motor Spirit (PMS) after the proposed subsidy removal.

There have been calls for the removal of subsidy by the administration of President Muhammadu Buhari before the end of June 2023.

The removal of subsidy has been projected to raise the cost of PMS, also known as petrol, significantly above the current pump price of N189 per litre.

Aside from the N250 billion intervention fund request to help cushion the impact of removing the subsidy, the IPMAN said it has also partnered with Gas Analytics & Solutions Ltd to locate natural gas dispensers at over 30,000 filling stations in Nigeria.

“We are writing to request an audience with you to present a palliative solution to cushion the impact of the removal of the unsustainable petrol subsidy.

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“Our partners, Gas Analytics & Solutions Ltd, have an agreement with the independent Petroleum Marketers Association of Nigeria to co-locate natural gas dispensers on our network of over 30,000 filling stations in Nigeria.

“This collaboration with IPMAN presents the most economic and expedient platform to deploy the necessary infrastructure to support a fast national roll-out of CNG (Compressed Natural Gas) for vehicles,” IPMAN said in a letter signed by its National President, Chinedu Okonkwo.

Part of the statement also reads that; “What is left is the support of the Central Bank of Nigeria to provide access to the Gas Expansion Fund for vehicles, Keke, and truck owners to access loans to finance the acquisition of natural gas conversion kits.”

The conversion to gas will increase demands that will enable oil marketers to set up more Compressed Natural Gas across filling stations.

IPMAN explained that: “Without a large pool of CNG customers, IPMAN will not be able to raise the funds required to set up CNG filling stations.

“We believe that with the support of the Ministry of Finance, IPMAN’s partnership with Gas Analytics will provide a platform that can in a matter of a few months cushion the impact of petrol subsidy removal and significantly reduce the need for foreign exchange to import petrol.

“We request an audience with you to discuss this further and present our proposal. We looking forward to hearing from you soon. Thank you for your time and consideration.”

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