The federal government has announced it is on the cusp of making a cheaper alternative to Premium Motor Spirit (PMS).
The government alternative is called Compressed Natural Gas (CNG) and it will be made available nationwide for N97 per litre. This is much lower than the N145 per litre at which PMS currently goes.
This was disclosed on Thursday by the Minister of State for Petroleum Resources, Timipre Sylva in Abuja.
He said the proposed alternative fuel source has already been test-run and over 10,000 vehicles in Benin, the Edo state capital, currently run on it.
Sylva added that fuel scarcity would be a thing of the past and gave a May 29, 2020 deadline date for the passage of the Petroleum Industry Bill (PIB).
He said: “What we have decided is that we should try and give the masses an alternative. This will move the masses to CNG.
“That is transport vehicles for example, out of the PMS loop to be using CNG. CNG cost less than the subsidized PMS. Per liter the subsidized rate of the PMS is N145 per litre. CNG will cost about N95 to N97 per litre.”
