The Minister of State for Petroleum Resources, Timipre Sylva, disclosed that the federal government plans to provide alternative petrol Compressed Natural Gas (CNG), for the masses, that will cost between N95 to N97 per litre
He promised that the Petroleum Industry Bill(PIB), will also be passed before May 29, 2020.
Sylva said this when asked if the government was going to reduce the pump prices of the Premium Motor Spirit (PMS), to make it more affordable for Nigerians.
The minister instead stated that there were plans to provide an alternative fuel that is cheaper.
According to him, the fuel CNG has undergone a pilot project in Benin City, where over 10,000 vehicles are already running on it.
With CNG, Sylva said that the cost of fuel will reduce to about N95 per litre.
“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 the CNG. CNG cost less that the subsidised PMS. Per liter the subsidized rate of the PMS is N145 per litre. CNG will cost about N95 to N97 per litre,” he said.
He also assured that Nigerians will never experience fuel scarcity again.
About the $62 billion court settlement payment that Nigeria is expecting from the IoC, he explained that the process is a cumbersome one to analyse, because it was a long time that $20 per barrel ceased to be a windfall.
He submitted that from the look of things and the time it took for reconciliation, it ceased to be for the companies and since it was not a stolen fund stacked somewhere, the federal government and the companies would have to settle it amicably.
He said that “there is no $62 billion anywhere that any company can pay.”
He noted that the industry has been stagnant for a very long time, owing to the non passage of the PIB, which the ministry has now planned to lobby the National Assembly to pass in bulk.
He lamented that the Nigerian petroleum industry has not moved forward, noting that at his first appearance in the industry, the country was already producing 2 million barrel per day, and projecting to produce 4 million barrel per day by this time.
He recalled that the United Arab Emirates was producing 2.7million barrel per day then, but has progressed to 4 million per day now, while Organisation of Petroleum Exporting Countries (OPEC), said Nigeria produces 1.774million barrel per day.
Enumerating the benefits that Nigeria will reap from the passage of the bill, he said it will create an enabling environment for investors to come into the industry.
With the passage of the bill, the minister said that the incorporation of the Nigerian National Petroleum Corporation (NNPC), and its Joint Ventures will become possible.
He added that with the legislation in place, it will become possible to conduct a major bid rounds, and its proceeds channeled into project development.
“Counting on the current harmony between the legislation and executive, we are optimistic that both the Petroleum Industry Administration and the Petroleum Industry Fiscal Bill on the other hand will be passed within the first anniversary of this administration
“We want to progress the consideration and passage of the overall petroleum and legislation. The team working in the PIB is on the final of the harmonization of the different versions from 2000 to date (2009, 2012 and 2018),” he added.
, for the masses, that will cost between N95 to N97 per litre){kind=link}