Fuel subsidy: Nigeria in talks with autogas original equipment manufacturers – Minister

The Federal Government has stated that part of its plans to ensure life is made easier for Nigerians before full removal of subsidy on fuel, will be to embark on an auto-gas plan, which it says it has already begun talks with original equipment manufacturers.

The disclosure was made on Tuesday by the Minister of State for Petroleum Resources, Timipre Sylva, during a special briefing of State House correspondents on fuel subsidy by the Presidential Communications Team at the Presidential Villa, Abuja.

He added that the FG is working on 2 plans for its autogas policy before the removal of fuel subsidy — a car conversion plan, simultaneously with a filling station plan nationwide.

Sylva revealed that Nigeria is discussing with original equipment manufacturers that are willing to come to Nigeria to set up.

He said, “They are actually willing to give us 50% of the total funding.

“We have discussed also with the Minister of Finance and how to match them with 50% of the funding, so that it can be 50-50 from us and the original equipment manufacturers.”

He added that the discussion is already concluded, citing that it is an ongoing conclusion.

“Very soon it would be brought to council. As soon we are done with council, the process of Nigerian marketers accessing the funding, and the process of conversion and building of gas stations begins,” he said.

He added that “the FG needs to put in place these measures for autogas, because if you convert the cars without installing the filling capacity (stations), then cars will not be in a functional system, as they need corresponding filling stations.”

Recall the Federal Government announced that the full removal of fuel subsidies is dependent on 3 factors including, the timeline of new refineries coming online, palliatives to cushions the effects of the removal by the Minister of finance and the full implementation of the autogas policy of the FG.