The cost of transportation has remained high despite the gradual conversion by commercial vehicles from Premium Motor Spirit (PMS) to Compressed Natural Gas (CNG) in Lagos and Abuja, raising concerns over the purpose of the Presidential Compressed Natural Gas (CNG) initiative (PCNGi) aimed at reducing the cost of transportation.
Weekend Trust reports that with the announcement of removal of fuel subsidy by President Bola Tinubu on assumption of office as president, the price of PMS skyrocketed by over 300 per cent, forcing an increase ranging between 50 and 100 per cent in the cost of transportation. For instance, Ogba to Obalande in Lagos increased to N1300 from N800 while Oshodi to Obalande increased to N1200 from N700.
According to the Consumer Price Index, transportation contributed 728.0 points to the latest inflation rate at 34.60 per cent, reflecting the hike in the cost of transportation and the limit on quality standard of living.
In a bid to cushion the hike in the cost of transportation, President Tinubu established the Presidential Compressed Natural Gas (CNG) initiative (PCNGi) in 2023.
The president, in a statement signed by his former Special Adviser (Media & Publicity), Ajuri Ngelale, described the initiative as a move to ease the impact of fuel subsidy removal on Nigerians by reducing energy costs.
He described the initiative as transformative, stressing that it was poised to revolutionise the transportation landscape in the country, targeting over 11,500 new CNG-enabled vehicles and 55,000 CNG conversion kits for existing PMS-dependent vehicles.
“The launch of this initiative also underscores this administration’s commitment to fostering a cleaner environment by reducing carbon emissions and promoting energy security through the utilization of domestic natural gas resources,” the statement reads.
Findings by Weekend Trust showed that some commercial drivers have converted to CNG while many are gripped with the apathy of conversion.
‘Why we can’t review our prices’
Samuel Adekoya who plies Ojota to Berger, at the increased price of N400 from N300, admited that CNG is economical, saying he spends N5000 to fill 65kg cylinder which lasts for a day and few hours the following day.
“I spend N5000 daily to fill my gas cylinder and I still use it for 2-3 hours the next day. Before I converted, I used to spend N35,000 on petrol to fill my fuel tank and it will last for two days,” he said.
He attested that his minibus vehicle was converted for free through the Commercial Vehicle Conversion Incentive Program (CV-CIP) provided by the federal government scheme through the support of the National Union of Road Transport Workers (NURTW) leaders in his park.
“Some of them believe the conversion will explode their vehicles and it will damage their vehicle engine. For me, I believe, it is lack of knowledge. When I saw people using CNG, I asked questions and checked online,” he added.
On the possibility of reducing the price of transport fare, he said until there is an equilibrium between the converted vehicles and vehicles yet to be converted, the price might remain high.
“There is a fixed price in the park, so it is not possible for me to reduce the price when it is my turn to load. I believe if the majority of drivers convert to CNG, the price will come down,” he said.
Oluwabusayo Olushola corroborated Adekoya’s assertions, saying the conversion has led to an increase in revenue after removing the costs incurred to operate daily.
“It serves me well compared to when I was using fuel. Then, in a day I spend N15000 – N20000 but now I spend N2800-N3000,” he said.
Chuks Davidson who supervises Portland – one of the free conversion centres in Lagos, applauded the initiative of the federal government, saing his firm has converted a lot of commercial vehicles from PMS powered to CNG under the free scheme.
He emphasised the need for the government to enforce compliance for converted vehicles to reduce their prices, saying absence of this will defeat the purpose of the initiative.
The supervisor added that reduction in the cost of transportation will reduce the cost of food items.
He admitted that some commercial drivers are scared of embracing the CNG due to lack of adequate knowledge underscoring the importance of CNG as cost effective and less hazardous.
“Let’s be honest, when they hear gas, they feel unsafe; as if something terrible will happen. They are scared. You know how long it took some people to start using the normal cooking gas, due to the wrong orientation.
“So, CNG is not like liquid gas. It is compressed air. It’s safer than your LPG (cooking gas). It’s safer than your fuel and diesel.
“In case there is a serious collision of two vehicles, with CNG installed on them, there will be no fire outbreak.
“The worst thing that can happen is that if there’s any leakage along the pipe or if any of the rubber breaks off, the gas will just vent away,” he said.
He said there has been high patronage from private vehicle owners to convert their vehicles.
“So, it is very cost effective. If 65 litres of CNG cylinder is installed in a car, you can fill it up with about N3,500. Now compare that to 65 litres of fuel, which is about N65,000, at the rate of N1,000 per litre,” he said.
Clement Igwe, a commercial driver, expressed pessimism, claiming that a driver recently uninstalled his converted vehicle due to malfunctions after conversion.
“I think there are some people who use it for a few months and then they disconnect it. So, that alone can even discourage anyone who is planning to do same.
A driver who spoke to Weekend Trust said “Some people said it’s flammable, some said it’s not but another reason is that the sound of the engine changes. I noticed this in the vehicles of some of my friends who have converted.
“I don’t even know if they are aware but it seems that it adds an extra weight on the engine. So, I don’t want to rush into it,” he said.
However, he noted the positives, saying CNG offers more revenue.
He expressed doubt over the reduction in the hike of transport fare, saying that the reduction in the cost of food items, house rents and medical bills will determine the reduction in the cost of transportation fare.
“If there should be a drop, automatically there should be a drop on the cost of food items, on house rent and hospital bills,” he said.
Gilbert Afasinu said conversion to CNG is expensive but economical.
“It is costly to install, but after the installation, refilling the gas is quite economical. CNG of N3500 can last you the whole day and beyond; something you cannot achieve with N20000 worth of PMS.”
Tunde Adetula said lack of leadership in his garage ia the reason many vehicles have not been converted.
“In this garage, no one has installed CNG because there is no one helping with the drive to get our vehicles installed. I believe it is unwise to go individually; it is wiser for us to go as a group. Some of the commercial drivers who are my friends told me they no longer know the price of petrol,” he said.
Lawrence Obapolo highlighted lack of awareness of the conversion centres and high financial demand to convert as the reasons for not converting his vehicle to CNG yet.
“The first challenge is the location of the conversion centres. How many do we have? The second challenge is that it is capital intensive to convert. So, those are the challenges that people have in migrating from PMS to CNG. I also heard that it is highly inflammable,” he said.
In December last year, free Compressed Natural Gas (CNG) buses were deployed in the Federal Capital Territory (FCT). This was part of the Presidential Compressed Natural Gas Initiative (P-CNGi) to help cushion the impact of the removal of fuel subsidies.
In a chat with Weekend Trust, Adetomiwa Abigail, a corps member serving at one of the government offices around Wuse said the free ride helped to reduce her transportation costs.
Salahu Ibrahim, a civil servant in Kubwa, said though some commercial vehicles converting to CNG, it has not had any positive effect on the cost of transportation.
