FG to Reduce Diesel Price by Over 60%. – Landslide News
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FG to Reduce Diesel Price by Over 60%.

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FG to Reduce Diesel Price by Over 60%.

byVictory Amah
September 20, 2024
in Business, Lifestyle, Tech
1

The Federal Government has set out to achieve more than 60 percent savings on diesel costs following successfully retrofitting train locomotives to operate on a dual-fuel system.

The Minister of Transportation, Said Alkali, expressed his satisfaction with the test run in a statement that was released by the ministry on Friday.

He said, “This achievement is a step towards reducing transportation costs and making train fares more affordable for the general public.”

At the Amina J. Mohammed Train Station (Idu Train Station) in Abuja, the Minister led the demonstration of the locomotive’s capabilities along the Abuja-Kaduna rail corridor.

The newly retrofitted locomotives, which run on a 70 percent Liquefied Natural Gas and 30 percent diesel mix, were test-run by the Federal Ministry of Transportation, marking a significant step in reducing operational expenses and promoting cleaner energy in Nigeria’s rail transport system.

Alkali further explained the retrofitting process, noting that before the modification, the locomotives ran entirely on diesel. The upgrade now allows them to operate primarily on LNG, with diesel comprising just 30 percent of their fuel consumption.

In spite of this success, he acknowledged that a 100 percent LNG conversion was not technically feasible due to the locomotive’s heavy-duty engine, originally designed to run on diesel.

“It is not technically possible to convert it to run 100% on LNG,” Alkali stated.

The minister also outlined plans to extend the retrofitting initiative across the national rail network.

He hammered on the need to review current regulations before fully implementing the conversion, saying, “We will now write to the Infrastructure Concession Regulatory Commission to allow them to assess the submission. This will enable the ministry to approach the Federal Executive Council for approval.”

The Managing Director of De-Sadel Consortium, Samuel Uko, praised the accomplishment, noting that this was the first locomotive in Africa to operate using LNG.

Uko said, “Without the proactiveness of the ministry and the minister, this would never have been possible.”

Victory Amah

Victory Amah

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