Petrol may cost N1000 per litre without subsidy says DPR Sarki Auwalu

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The Director of Nigeria Department of Petroleum Resources (DPR), Sarki Auwalu has said the price of petrol may increase from its current price to 1000 Naira per litre without subsidy.

The price of petrol presently is between N164 to N167 per litre.

Peoples Gazette reported, the Auwalu said this on Monday while responding to questions at the Second Quarter, 2021 Business Dinner of Petroleum Club Lagos.

Auwalu in his statement said the removal of subsidies without alternative fuel will lead to citizens paying more for petrol. He also added alternative fuel is apposite to eliminating subsidy on petrol prices.

“Nigerians may be paying as high as N1, 000 to buy one litre of petrol in the country when subsidy on petrol is removed and when the alternative energy or autogas gas policy becomes fully operational,” Mr Auwalu was quoted to have said in the statement.

He also suggested the conversion of fuel-powered cars to gas-powered and concluded that it will cost over $3 billion to convert 8 million public cars in the country.

“As of today, there are 22 million cars in Nigeria. Eight million are for public use. Imagine if you want to convert every car into gas, the average cost of conversion is $400,” he said.

“Converting eight million cars requires $3.2 billion. To do that, there are a lot of environmental investors which can invest and recover from the sale of gas and we are encouraging that.

“Once that is achieved, you will see that PMS can be sold at N1000. After all, the average distance covered by one-gallon equivalent when you compare it with LNG or CNG with respect to energy for mobility is 2.7 against one. One for PMS, 2.7 for LNG or CNG,” he added.

”So, with that advantage, you will see that it creates an opportunity for this industry again. The issue of subsidy, the volume will all vanish and that is what we are working towards.”

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