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Gas Association Proposes Incentive-Based Policy to Drive Autogas Conversion

By Moses Patience Chat

The Nigeria Liquefied Petroleum Gas Association (NLPGA) has proposed an incentive-based policy to drive the autogas conversion initiative of the Federal Government.

The Association made the proposal, while announcing its 13th International Conference and Exhibition, which is scheduled to take place from November 7 to 8 2023, at the Petroleum Technology Development Fund (PTDF) Towers in Abuja.

According to a joint document by NLPGA, the Nigeria Gas Association (NGA), the Lagos Chamber of Commerce and Industry (LCCI) LPG Group, and the Association of Local Distributors of Gas (ALDG), the conversion cost for petrol vehicles is between N300,000 to N400,000, with a saving cost of N40 per km, while a tricycle costs N100,000 to N200,000 with a saving cost of N10 to N15 per kilometer. 

The Association urged the Federal Government to take action and implement proposed palliative incentives to drive autogas conversion, including duty, levy, and value added tax (VAT) waiver for vans and lorries.

NLPG explained that such incentives would help to make autogas more accessible and affordable to consumers while also helping to reduce emissions and fuel costs.

 The President of the Association, Felix Ekundayo, noted that the advantages of LPG usage are not only finance-based but also environmentally driven with LPG generating less carbon-dioxide and nitrogen-oxide emissions than petrol and diesel engines.

He stressed that Nigeria has a gas advantage, with about 206 trillion cubic feet of gas reserves and that government can tap into gas as cheaper fuel for transportation by augmenting the conversion for at least one million vehicles, two million tricycles, and five million generators over the next three months.

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