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October 21, 2020 - BY Admin

Price of CNG to Crash as Demand Increases – Olugbenga Ashiru

The Chief Strategy Officer, Jamub Group of Companies, Mr Olugbenga Ashiru has said the future of energy in Nigeria is gradually drifting from Premium Motor Spirit (PMS) to Compressed Natural Gas (CNG).

Mr Ashiru stated this in Jamub Corporate headquarters, Abuja during an interview section with newsmen.

According to him, it is a good start for the government to realize that the country needs alternative energy sources; “CNG  burns faster than fuel,  If the government can use natural gas, Nigeria will do away with petrol, if CNG is chosen, the pressure to import PMS would reduce, on the other hand, CNG is produced locally”.

Mr Ashiru though agreed with the high production and purchase cost of CNG as well as the financial burden it will put on the citizenry, he argued that as demand for the product increases, the cost will gradually be crashed down.

He said, “In five years after the introduction of the product you will realize it would become cheaper and competitively a cleaner energy source. Everyone will benefit, the environment, government, and citizens. The pressure of foreign exchange and importation will reduce.”

Meanwhile, responding to questions on the deregulation of the oil and gas sector he said, “The oil and gas industry had always been deregulated, however, the Federal Government had been having a cap on only one product line. Now that it has been deregulated, the prices have increased as such Nigerians are scared. I can assure you that in the long run, It will help because more investors would want to work with us. People would want to bring in their products and make profit quick by selling at a cheaper price, everyone would want to compete, and it would be good for the consumer. I can state for sure that full deregulation is the way forward”.

 

Signed:

Freda Okhiria,

Public Relations Officer.