CNG Price Hike Sparks Concerns in Nigeria

The cost of Compressed Natural Gas (CNG) in Nigeria has surged from ₦230 to ₦450 per Standard Cubic Meter (SCM), sparking concerns among motorists and industry stakeholders. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that the price hike isn’t a result of government-imposed subsidy removal but rather a market-driven adjustment.

According to NMDPRA’s Director of Public Affairs, George Ene-Italy, Nigeria’s oil and gas sector operates a completely deregulated market, with prices determined by baseline prices dictated by the Petroleum Industry Act.

The Presidential Initiative on Compressed Natural Gas (PCNGI) corroborated this, stating that recent pump price adjustments were private-sector decisions, not government directives.

The PCNGI emphasized that its mandate, directed by President Bola Tinubu, aims to promote CNG adoption as a cheaper, cleaner alternative to petrol and diesel. Despite concerns over affordability and sustainability, the sector has attracted nearly $1 billion in private investment, with the government assuring Nigerians that CNG will remain significantly cheaper than petrol and diesel.

Long queues at CNG refilling stations have compounded frustrations, with some queues stretching up to 1.5 kilometers. Industry stakeholders warn that price instability and inadequate infrastructure could derail CNG adoption, potentially forcing some users back to petrol.