The Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA) Abdulkadir Saidu Umar recently spoke with a local media to explain why the oil industry was deregulated and said that Autogas will soon serve as an alternative to petrol in Nigeria.

Regarding PPPRA’s announcement on the removal of the petroleum subsidy and deregulation of the sector, Saidu Umar said the pump price Nigerians expect to see will be a reflection of the international market prices of petroleum products. He also added that, among the measures to cushion the impact of the increase on Nigerian consumers, “efforts are being put in place to develop alternatives to gasoline and diesel by deepening the utilisation of Autogas.”

This will be executed in the medium-term helping to mitigate the effects of high oil prices and will also offer the consumer an alternative and clean option. Already, several companies have indicated interest in Autogas development, he said, especially in the area of LPG retailing for the domestic market.

Others are seeking partnerships with existing retail outlet owners for co-location and development of multi-fuel stations. Meanwhile, existing oil companies have expressed willingness to expand their facilities to include Autogas dispensers.

Moreover, the Minister of State for Petroleum Resources, Timipre Sylva, also spoke about oil prices and agreed that the impact of its increase will be mitigated with Autogas. “We are hoping that with these implementation, which we are also pushing for this year [we intend to roll that out in a few weeks], LPG can serve as fuel for cars. Because we believe that with deregulation, we need to introduce Autogas and a lot of opportunities for conversion of cars,” he said.

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22 July 2020