BusinessNews

FG starts free CNG conversion for commercial vehicles

The Federal Government has begun the free conversion of petrol and diesel-powered commercial vehicles to compressed natural gas in an effort to reduce transportation costs across the country.

It began the effort in Abuja and Lagos, encouraging commercial transport operators to participate in the plan by bringing their cars to be changed, emphasizing that using CNG will lower transportation costs by more than 40%.

Officials of the Federal Ministry of Information and National Orientation, along with those from the Presidential Compressed Natural Gas Initiative, monitored the commencement of the exercise at the Federal Capital Territory, as transporters brought in their vehicles to be converted.

The Federal Government had earlier declared on Thursday that the conversion of petrol and diesel-powered commercial vehicles to run on compressed natural gas was going to be free of charge.

It made the announcement in Abuja after negotiating agreements with numerous firms involved in the conversion of petrol and diesel cars to run on CNG.

It stated that commercial carriers affiliated with several unions, including the Road Transport Employers Association of Nigeria, the National Union of Road Transport Workers, and the Nigerian Association of Road Transport Owners, among others, would gain from this.

The Programme Director/Chief Executive, Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, had disclosed this to journalists after the government agency signed agreements with various companies in Abuja.

Speaking at one of the conversion centres during the commencement of the exercise on Friday, the Sales and Business Development Manager, P-CNGI, Lara Ogunleye, said, “Today (Friday), we are at the NASENI Portland Conversion Centre where we have started the conversion for commercial vehicles. The first one that we have seen is from the e-hailing cabs that are part of the conversion scheme.

“The e-hailing cabs are supposed to pay a fraction of the cost of the conversion, while the transport associations have 100 per cent conversion free charge, and the cost of the kits is also 100 per cent free. Today we have started with the e-hailing cabs and the scheme is going to be done across the federation.

“We are starting with Abuja and Lagos. We will keep rolling it out and the announcements will be made as we keep moving to each of the states.”

Share this:

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *