FG to Reduce Petrol Price to N49 Per Litre with Innovative Ethanol Blend Solution
The Fuel Price Conundrum:
The recent decision by President Bola Tinubu to eliminate the fuel subsidy in May 2023 led to significant fluctuations in petrol prices. Currently, petrol prices vary across the nation, with rates fluctuating between N580 and N617 per litre, depending on the location. Additionally, oil marketers have warned of a potential surge in fuel prices to N800 per litre in the coming weeks, citing rising landing costs as a critical factor behind this anticipated increase.
The Innovative Solution:
The proposal to incorporate ethanol into gasoline was made during the BusinessDay/Major Oil Marketers Association of Nigeria Policy Intervention Series on Alternative Fuel in Lagos. According to Clement Isong, the Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), blending ethanol with petrol offers a substantial opportunity for savings for both the Federal Government and consumers. Isong emphasized, “Blending ethanol with petrol is one of the ways to bring down prices by up to N49 per litre. This practice can also support local farming and agro-processing industries, particularly using abundant resources like cassava.”
The Consumer Impact:
By implementing this recommendation, if the current official pump price of N617 per litre by the Nigerian National Petroleum Company (NNPC) Limited is reduced by N49, consumers could potentially purchase the product for approximately N568 per litre. The reduction in production costs would directly impact the prices paid by consumers at fuel stations, providing much-needed relief to Nigerians grappling with inflation and the escalating cost of daily life.
Ethanol as an Environmental and Economic Solution:
The utilization of ethanol as a fuel source for internal combustion engines has gained significant attention due to its potential environmental benefits and long-term economic advantages compared to fossil fuels. Ethanol can be blended with petrol in various ratios, ranging from pure ethanol (E100) to blends with anhydrous ethanol, which is ethanol without water. These blends serve the dual purpose of reducing the consumption of petroleum fuels and mitigating air pollution.
NNPC’s Clarification:
In related news, the Nigerian National Petroleum Company (NNPC) clarified the presence of fuel queues in various areas, including Lagos, Abuja, and several other regions across the country. NNPC attributed the queues to a temporary reduction in Depot loadout in Apapa, Lagos, spanning a few days, and reassured motorists that distribution would return to its regular pace in the coming days.
Conclusion:
This innovative approach to reduce petrol prices through ethanol blending presents a promising path to alleviate the financial burden on Nigerian consumers while also promoting sustainability in the energy sector. The Federal Government’s commitment to exploring alternative solutions marks a significant step towards ensuring affordable and stable fuel prices for all Nigerians.
