The Presidential Compressed Natural Gas Initiative (PCNGI) on Friday announced a reduction in transportation fares for passengers using Compressed Natural Gas (CNG) powered vehicles in Abuja.
The new fares, which represent a 40 per decrease from previous rates, were agreed upon through a collaboration between the PCNGI and the National Union of Road Transport Workers (NURTW).
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The fare reduction applies to various routes from the Area 1 Motor Park, with new fares ranging from N240 to N900, depending on the destination.
In August 2023, President Bola Tinubu approved the establishment of the PCNGI. The government said it intended to make sure that about a million vehicles run on CNG.
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Announcing the fare reduction during a tour of the Area 1 motor park in Abuja on Friday, the Programme Director/Chief Executive of PCNGI, Michael Oluwagbemi, said the reduction is part of the initiative’s efforts to cushion the effect of the removal of fuel subsidies and promote sustainable transportation solutions.
“I am here to announce to you that here in Area 1 as of today, Area 1 Park in conjunction with the leadership of National Union of Road Transport Workers, we have come here to start enforcing the price reduction.
“What we agreed with the NURTW, they have given us the prices, the fare amount from Area 1 to different destinations when they were running on petrol and we have come together, made an analysis and achieved a 40 per cent reduction in the fare, in the transportation from Area 1 to all other destinations,” Mr Oluwagbemi said.
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Mr Oluwagbemi, represented by the Regional CNG Expansion Coordinator for Northern Nigeria, David Idakwo, said “Area 1 to Gwagwalada, and Area 1 to Bwari/Dutse when they were running on fuel, was going for N1,500. We have been able to reduce it to N900.
“Area 1 to Kuje, when they were running on petrol, is N1,200 and we have also reduced it to N720. Area 1 to Galadimawa which was N500 was reduced to N300. Area 1 to Mpapa which used to be N1,000 was also reduced to N600.
“Area 1 to Zuba was N1,500 and that also has been reduced to N900. Area 1 to Lugbe was N700 before now, is now N420. Area 1 to Jabi was N700 and has also been reduced to N420. Area 1 to Wuse was N400 before now. It has gone down to N240,” he said.
He added that Area 1 to Nyanya/Maraba was N700 before now. The fare price has gone down to N420.
“So at the moment, these are the reductions we have achieved at Area 1 park,” he said.
He said the fare reduction initiative will be expanded to other parks within Abuja and eventually across the country, noting that the government has put in place a task force to enforce compliance with the new fares.
According to him, passengers can report non-compliance of drivers by contacting the PCNGI customer service number or reporting to the park Chairperson.
He explained that customers can identify vehicles that are running on CNG by PCNGI stickers that are pasted on them.
Also Speaking, NURTW Garki Branch Secretary, Ibrahim Jibril, said the union has implemented a price tag system, where CNG-powered vehicles will display their fares.
“Now, when we notice that most of the vehicles are being converted, we put a task force in place in order to check vehicles that are already being converted so that we can give a reduction in their prices. And part of our strategies are vehicles that have been converted.
“We have a price tag written on the vehicles so that you, as a passenger, if you are going to Gwagwalada, Nyanya, you will notice that this vehicle is being converted, and this is the price tag. So if there is any fault anywhere, we will get to know within a very short time. And we believe in every driver, because we are always there to make sure that it is about their comfort.”
This move, he said, is part of the union’s efforts to ensure transparency and accountability in the implementation of the fare reduction.
He added that almost 70 per cent of vehicles in Area 1 have been converted to CNG, warning that drivers who fail to comply with the new price will face sanctions.
ALSO READ: Nigerian govt’s invested over $450 million in CNG – PCNGi
“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. So that at least we can, even in other sectors, we cannot get a reduction or we cannot get any, this thing. At least for our own sector, we are there to protect the interests of our passengers and then to enjoy the benefit of this,” he said.
He described the new fare as a fair deal on the part of the drivers because there was much more profit for them despite the price crash.
“If you look at it now, you go to buy fuel, 20,000 Naira. And then you go to buy gas, 4,500 Naira. You will use the same volume, the same time to work. At least you are saving almost 75 per cent. So moving 40 per cent out is just even a bonus because you still have an extra 35 per cent to gain as a driver,” he added.
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