Adopting Gas Automobile Fuels (LPG & CNG) into the Nigerian Transportation System

Abstract

This study investigates and proposes the use of gas automobile fuels (LPG & CNG) as transport fuel in Nigeria, by showing the policies and incentives that have been utilized by other countries and an analysis of the cost efficiency and environmental effect of the use of auto-gas fuels. The use of CNG and LPG as auto fuel in Nigeria presents benefits with regards to efficiency and environmental friendliness will be highlighted in this research work with emphasis on the economic advantage. Demand for natural gas is likely to overtake other fossil fuels due to its availability, accessibility, versatility and cleanliness. This research shows that adopting gas automobile fuels (LPG & CNG) as an automotive fuel has few barriers but in the long run is very viable in terms of emissions of Green-house gases to the environment and financially economical. From the study, we suggest that policies and incentives would be helpful for the implementation of auto-gas as a transport fuel with regards to fiscal and regulatory such as; excise-duty exemption or rebate, grants/tax credits for gas fueling vehicles conversion/acquisition, vehicle sales-tax exemption or income/profit tax credit and more. If Auto-gas for automotive fuel is considered and implemented in the Nigerian Transportation system, it will move the Nigerian fuel market from an inelastic feature to an elastic feature.

Keywords: Gas, Automobile Fuels, Transportation System, Nigerian

DOI: 10.7176/JESD/10-14-02

Publication date:July 31^st 2020