Nigerians may pay N1000 per litre for petrol should subsidy be removed without alternative energy sources, according to Department of Petroleum Resources.

Nigerians presently pay between N164 to N167 for per litre of Premium Motor Spirit.

While responding to questions at the Second Quarter, 2021 Business Dinner of Petroleum Club Lagos, DPR Director Sarki Auwalu, said subsidy removal without alternative fuel will lead to citizens laying more for petrol, a statement on DPR website Monday said.

He said that alternative fuel is germane to eliminating subsidy on petrol prices, adding that without alternative fuel, people will pay more for petrol.

“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.

Suggesting conversion of fuel powered cars to gas powered, Mr Auwalu said over $3 billion will be needed to convert 8million public cars in the country.

“As at 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 opportunity for this industry again. The issue of subsidy, volume will all vanish and that is what we are working towards.”