The Presidential Initiative on Compressed Natural Gas, Chief Executive Officer, Michael Oluwagbemi, has announced a 40 per cent transport fare reduction for commuters boarding CNG-powered taxis from the popular Area One Motor Park in Garki, Abuja.
The PiCNG CEO made the announcement at a field press briefing in Area 1 park on Friday in Abuja after the successful conversion of over 50 per cent vehicles at the park to CNG fueling.
He said the initiative is part of efforts to cushion the harsh effects of fuel subsidy removal, adding that the 40 per cent fare discount was specifically introduced to ease the high transport fare burden placed on Nigerians.
Represented by the Regional CNG Coordinator, North, David Idako at the motor park, Oluwagbemi said the PiCNG management had reduced the price in collaboration with the leadership of the National Union of Road Transport Workers.
He stated that the reduction, which took immediate effect, is not only aimed at providing financial relief to commuters but also at promoting the adoption of CNG as a cleaner and more cost-effective alternative to petrol.
Idako said, “We have worked hand-in-hand with the National Union of Road Transport Workers. We have converted a lot of their vehicles, and based on the agreement that we have with them, of course, it is for them to reduce the prices for the general public so that the effect of the fuel subsidy that was taken off the burden will be reduced on Nigerians.
“So I am here representing the project director to announce to you that here in Area 1, as of today, Area 1 Park, in conjunction with the leadership of the National Union of Road Transport Workers, we have come here to start enforcing the price reduction. This is why we are here. We have converted over 50 per cent of vehicles in Abuja to CNG, and we are working tirelessly to increase CNG availability across the country.”
The new fares range from N240 to N900, depending on the route.
According to him, from Area One to Gwagwalada, which used to cost N1,500 with petrol, reduced to N900, while Area One to Bwari Dutse which was also N1,500, was reduced to N900. Area One to Kuje, which was N1,200, was reduced to N720.
He added that Area One to Galadimawa, which was N500, was reduced to N300.
The PCNGI boss said Area 1 to Mpape, which used to be N1,000, was reduced to N600. Area one to Zuba, according to him, was 1,500, and that was also reduced to N900.
He said Area One to Lugbe, which was N700, was reduced to N420, while the Jabi route, which was N720, was reduced to N420.
Area One to Wuse, he said, was reduced from N420 to N240 while Area One to Nyanya was reduced from N700 to N420.
He also said Area 1 to Kabusa N800 was reduced to N480, while the Apo route was reduced from N500 to N300.
On the modalities to ensure compliance with the new fares, he said there was a task force comprising members of the PCNGI and NURTW in place to enforce compliance with the new price regime.
He added that CNG stickers and the new prices were on the vehicles for passengers’ information.
Passengers were advised to report defaulting drivers to the task force for sanctions.
“So at the moment, these are the reductions we have achieved at Area 1 park. The reduction project will continue. More cars have been converted and we move from here now.
“We are going to go to Area 3 where we have also done the reduction of their prices. We are going to go to all other parks within Abuja and eventually the country,” he stated.
Similarly, the Secretary of the Garki Branch, National Union of Road Transport Workers, Ibrahim Jibril, said the union is in total support of the 40 per cent reduction.
“We are in support of the 40 per cent reduction. If you look at it now, you go to buy fuel, N20,000. And then you go to buy gas, N4,500. You will use the same volume, at the same time to work. At least you are even saving almost 75 per cent.”
He further commended the President for his efforts to reduce the suffering of Nigerians.
“The President has tried his best to see how he can reduce the sufferings of Nigerians in order to reduce the price of transportation,” he said.
To ensure compliance with the new fares, the union has put in place a task force to monitor and discipline errant drivers.
“We have put a task force in place to checkmate vehicles that are already being converted, so we can give a reduction in their prices,” the NURTW Secretary explained.
“As long as we are giving that benefit, we also want the members to enjoy it in order to make sure that Mr. President succeeds in this program that he has launched,” he concluded.
Meanwhile, the Commercial Coordinator of PICNG, Tosin, Coker, assured that the government is working hard to increase CNG availability across the country, with more stations coming online soon.
“We are working hard to make sure we get these stations up and running.”
“We are working tirelessly to make sure gas is available everywhere; we see the queues in all the stations here and a lot of MRUs that are coming in.”
“We have 10 stations across Abuja, and we know even in this coming month, we have at least two more coming on stream,” he said.