The government wants to scrap an auto-zone oil-recycling scheme in the country.
The move is part of a nationwide programme to reduce carbon emissions by 50% by 2030 and aims to reduce emissions by 80% by 2050.
The government has decided to scrap the auto-zones pilot programme after it came under pressure from stakeholders, including the petroleum industry, which said the scheme could have helped reduce emissions.
According to the government, the programme had reduced carbon emissions at the cost of $5.6 billion a year, which had been offset by $4.2 billion in direct subsidies.
The government had set the target at $25 billion.
The pilot programme was aimed at encouraging companies to sell the fuel in smaller volumes and to reduce fuel consumption by as much as 30%.
But the government said the pilot scheme was not the answer to reducing emissions.
It had also introduced a new fuel price that has come to be called “Petrol 3.0” by industry.
The petroleum industry said that the pilot programme could have been better targeted and would have benefited the petroleum sector, especially those in the petroleum and coal sectors.
The petroleum sector has been pressing the government to phase out the petrol-to-petrol ratio that was set at 12.5 litres per tanker and that has now been cut to just 10.5.
The industry said it would be better for the government and stakeholders to work on reducing emissions and making petroleum more affordable.
The oil sector has also pointed out that the government had not implemented its target to reduce diesel-to, gasoline-to and aviation-to consumption.
The petroleum sector said that even though the target has been met, the government should have set a goal for the next two years to reduce the fuel consumption and the emissions.