FG will no longer grant license to marketers without CNG pump — NMDPRA
The Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that it will no longer grant retail licenCes to marketers without a dedicated pump for Compressed Natural Gas (CNG).
The Authority noted that it has become mandatory for intending retail licensees to be now required to establish a CNG point in their filling stations before getting final government approval.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, disclosed this during a meeting with key oil marketing companies during the week in Abuja.
Speaking, Farouk urged the oil marketers to commence the process of establishing Compressed Natural Gas points at their filling stations to increase consumer accessibility.
He implored the major marketers to explore the availability of CNG in their gas stations as President Bola Tinubu has directed that government vehicles to be purchased henceforth must be CNG-powered.
He said new applications for retail licences would no longer be approved without CNG points.
Ahmed, who described the push by the Federal Government to encourage the use of CNG as an alternative to petrol as a revolution, said the government was determined to reduce the burden of petrol on the economy.
He added, “We also discussed the CNG revolution and our collective effort to ensure that we reduce the burden on the economy by having an alternative to PMS which is very costly especially due to exchange rate fluctuations and instability. We are looking at gas because we have it in abundance, we have over 200 trillion cubic feet of gas. All we need is to harness the industry to produce, invest and be good for the consumer and CNG is the way to go.
“We discussed our plans and collective responsibility to add CNG in our petrol stations very soon just like we have PMS, diesel and kerosene, we also want to have CNG so that it would provide easy access to the consumers but of course, we have to address the supply side and we are working with the producing companies, our sister agency, NUPRC and NNPC Limited as well as Gas Aggregation Company of Nigeria to ensure that the product is also available at a competitive cost to the consumers.
“Secondly, we want to reduce the burden of the importation and consumption of PMS. We explored the possibility of converting the energy requirement of retail outlets and depots by the stakeholders here going into solar but of course there is a high entry cost and we have discussed that and it is going to be in phases. By doing so, we will reduce the demand for diesel in terms of powering our generators by utilising solar options. Once we are done with consultations, we will require that CNG add-ons be put in petrol stations and for new applications, one of the requirements will be that you must have a CNG add-on in the petrol station,” he said.
He also hinted at plans to equip retail outlets and trucks with trackers to oversee product movement, dispensing, and volume accounting to obtain a precise estimate of our national consumption.
“We also talked about our national consumption, the requirement for our national consumption for petrol stations, retail outlets and trucking industries to put some trackers that monitor the movement of the product as well as the dispensing and accounting for the volume sold or transported so that we can have a very good estimate of our national consumption. Because currently what we do is rely on trucking information rather than the actual delivery into retail outlets or other consumption areas.”
Speaking on behalf of the companies, the CEO, Matrix Energy, Mr Abdukabir Adisa Aliu said the companies were ready to support the government in its effort to increase energy sources for Nigerians.
“It is the country first and it is when you have a good country that the marketers will be able to operate and the consumers would be able to buy. I think the decision of the Federal Government supersedes all other decisions that we have. We are all in alignment with the decisions of the government and plead with Nigerians to be patient,” he stated.
