Nigeria clarifies vehicles conversion to autogas cars not totally free

*There would be different payment plans for car owners who want to convert their cars, reiterating that the conversion is not totally free ─Justice Derefaka, Technical Adviser on Gas Business and Policy Implementation to Minister of State for Petroleum

Emmanuel Akosile | ConsumerConnect

As regards conversion of cars to autogas vehicles in the country, the Federal Government of Nigeria has explained that vehicle owners will pay N250,000.

Recall Malam Mele Kyari, Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), earlier Tuesday, December 1, 2020, had stated that one million cars are to be powered by Autogas ‘free of charge’.

However, Justice Derefaka, Technical Adviser on Gas Business and Policy Implementation to Timipre Sylva, Honourable Minister of State for Petroleum, said on a Channels TV programme Wednesday, December 2 that car owners would have different payment plans to convert their cars to autogas.

The Technical Adviser on Gas Business and Policy Implementation stated that “the cost varies.

“So, in terms of cost implication, it depends on the cylinder of the vehicle.

“And of course, for a typical SUV cylinder, it is a bit higher but on the average, it is around N200,000 to N250,000 and this is for a four-cylinder vehicle.”

Derefaka disclosed that the cost becomes “a little bit higher for a six-cylinder SUV vehicle.”

As regards any payment plan for the car conversions to autogas vehicles, he clarified that there would be different payment plans for car owners who want to convert their cars, reiterating that the conversion is not totally free.

He noted that “the owner of the car basically will decide to say I want to run on autogas or CNG or LNG and like the Honourable Minister had mentioned it as well, conversion basically, has different strands.

“You can partner with your bank, and then the bank will now agree with the conversion centre to say ‘Convert our customer’s car for free.’ ”

He declared that it is not free in its entirety.

“But then you now go and covert your vehicle. What happens is that the installer will put some form of mechanism that each time you buy the gas; a certain amount will be deducted to pay for the conversion kits,” said he.

In terms of the cost effectiveness for consumers of the service in the country, Derefaka dismissed fears that many Nigerians will see the conversion fee as expensive.

Payment can be done within five to seven months, he noted.

The Technical Adviser said: “And that in its self has saved you the use of gas in lieu of petrol to about 45-50 per cent.

“So, there is a huge cost-saving in that regard.”

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