Nigeria: NLPGA asks for incentives to encourage Autogas conversions
The National Liquefied Petroleum Gas Association (NLPGA) has proposed an incentive-driven policy to boost Autogas conversion initiative. The association urged government to take action and implement proposed palliative incentives to accelerate transition to LPG, including duty, levy and VAT waiver for vans and trucks.
According to a joint document by NLPGA, Nigeria Gas Association (NGA), Lagos Chamber of Commerce and Industry (LCCI) LPG Group and Association of Local Distributors of Gas (ALDG), the conversion cost for petrol vehicles is between N300,000 (USD 397) to N400,000 (USD 530) with a saving cost of N40 per km, while a tricycle (four-stroke engine) costs N100,000 (USD 132) to N200,000 (USD 265) with a saving cost of N10 to N15 per km.
The association believes that such incentives would help to make Autogas more accessible and affordable to consumers, while also helping to reduce emissions and fuel costs.
Felix Ekundayo, President of the NLPGA, explained the advantages of Autogas adoption are not only finance-based but also environmentally driven with LPG generating less CO2 and NOx emissions than petrol and diesel engines.
He also stressed that Nigeria has a resourse advantage, with about 206 trillion cubic feet of gas reserves. He urged government to tap into Autogas as a cheaper fuel for transportation by expanding the conversion for at least one million vehicles and two million tricycles over the next three months.
Source: The Guardian
5 July 2023