Stakeholders urge FG to make CNG kits duty free
NAN-HE-1
Accessories
Lagos, Oct. 7, 2016 (NAN) Stakeholders in the oil and gas sector have urged the Federal Government to make importation of kits on Compressed Natural Gas (CNG) duty free to encourage effective vehicular gas utilisation.
They made the appeal in separate interviews with the News Agency of Nigeria (NAN) on Friday in Lagos, while speaking on the slow pace at which vehicles switched to the use of CNG
Mr Sunday Dawodu, Managing Director, Skylop ultimate gas Ltd., observed that the high cost of CNG accessories contributed to the sluggish manner at which motorists were converting their vehicles to gas-fired utilisation.
Dawodu said that the removal of duty fees on imported CNG accessories would reduce the cost of converting vehicles to gas.
According to him, this will also facilitate the use of compressed natural gas in the country so as to curtail pollution.
He, however, added that CNG was cheaper and environment friendly.
“I have five cars already converted to CNG; I use Prado jeep, since the conversion, I usually spend about N2,800 on gas for journeys that could have gulped petrol worth N5,000.
“I have also come to realise that maintenance of gas driven cars is cheaper than vehicles that use petrol,’’ Dawodu said.
Mr Idris Awobokun, an energy consultant, said that motorists were challenged in the swapping of conversion kit due to huge amount involved.
Awobokun said that if government should formulate policy on duty free for CNG kit, it would go a long way to attract motorists to convert.
He added that the government should make conversion very low to enable them to switch their kit to another vehicle.
Awobokun also appealed to government to create a more pocket-friendly price for gas in view of the numerous associated benefits with CNG.
Mrs Jummai Adamsom, Managing Director, Excel Gas Ltd., urged government to make gas distributing companies to make payment for gas in local currency instead of dollars.
Adamson said that the impact of the increasing price of natural gas on the manufacturing sector and companies was alarming.
She said that manufacturing and distribution companies were facing challenges due to the rising cost of gas in the face of depreciating value of the naira.
The gas distributor said that in the light of the falling value of the naira against the dollar, it was not proper for manufacturers to continue to pay for gas in dollars.
“In order to avoid further misunderstanding on the issue of settlement of bills with our numerous franchisers, our members are advised to pay their bills henceforth on the naira unit,’’ she said. (NAN)
YO/ENN/IA
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(Edited by Idris Abdulrahman)