Fuel Subsidy: ‘CNG cannot be immediate alternative to fuel’

Price Waterhouse Coopers Limited has said that the conversion of vehicles for the use of compressed natural gas (CNG) is better planned for the long term. It, however, noted the feasibility of compressed natural gas (CNG) as an alternative to fuel in the short to medium term. In its recent report on fuel subsidies in Nigeria, it also noted that some stakeholders had called for the adoption of CNG as an alternative to fuel (petrol) for vehicles in Nigeria.

It stated that while CNG has the potential to reduce fuel reliance and increase natural gas-powered vehicles, it advised a cautious approach to implementation. It noted that CNG would increase the number of natural gas-powered vehicles in Nigeria and that many Nigerians would no longer have to rely so much on fuel. However, PwC believes that the conversion of vehicles for the use of CNG is better planned for the long term.

According to the report, CNG has been proposed as a promising alternative to petrol in Nigeria due to the country’s significant natural gas reserves. This has several potential advantages, including lower cost, reduced emissions, and improved fuel efficiency. “One of the most significant benefits of CNG is that it is considerably cheaper than petrol, which could result in substantial savings for vehicle owners. Addition- ally, the cost of CNG is more stable than the volatile price fluctuations experienced by petrol,” it said.

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