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Fuel Subsidy: Oil Marketers Convert 800 Petrol Tankers into Gas Supply Vehicles



Petrol Tanker

In the aftermath of removing fuel subsidy, oil marketers are currently converting some of their trucks to supply gas to filling stations in order to dispense Compressed Natural Gas (CNG) to vehicles that run on gas.

News About Nigeria understands that approximately 800 tankers that were previously used to transport petrol to filling stations are being converted by marketers to transport gas to retail outlets.

Marketers have also begun installing CNG dispensing pumps in selected filling stations that traditionally dispensed Premium Motor Spirit, commonly known as petrol.

The decision to convert the tankers and promote the use of CNG gained momentum after the Federal Government halted the subsidy on Premium Motor Spirit (PMS) following President Bola Tinubu’s announcement on May 29, 2023, declaring an end to the subsidy.

The Federal Government has been encouraging motorists to adopt CNG as an alternative to petrol, highlighting its lower cost compared to subsidized petrol and its cleaner and abundant availability in Nigeria.

Chinedu Okonkwo, the National President of the Independent Petroleum Marketers Association of Nigeria, stated, “Some of my members have started signing up to dispense gas at their stations, as well as collocating gas in their outlets. One of the major independent marketers has provided over 500 of his trailers for conversion to transport gas to filling stations.”

Okonkwo, however, requested not to disclose the owners of the stations, as they prefer not to have their names published at the moment to protect their businesses.

He further explained, “There are some new tankers too, over 300 of them have also indicated interest to have CNG (Compressed Natural Gas) trucks. These trucks are to serve filling stations that would be dispensing gas to vehicles.

“What we will do is collocate the gas dispensing plants in a plug-and-play model with existing filling stations. That is the beauty of it and that is why IPMAN is very keen on this project because there is no Local Government or ward in Nigeria today that you won’t see my members.

“We control over 80 percent of the downstream oil sector. So it is an advantage for us. For if you are to build new gas or CNG stations, it will take a huge cost. But this collocation model has helped to reduce the exposure in terms of building new stations.”

The movement towards gas usage in vehicles received further support when the Depot and Petroleum Products Marketers Association of Nigeria met with President Tinubu and pledged to provide 100 units of CNG/diesel-powered, 50-seater buses to improve mobility among the most vulnerable citizens.