The cost of Compressed Natural Gas (CNG) has risen sharply from N230 to N450 per standard cubic metre (SCM), following a subsidy cut by the Federal Government.
Diaspora Digital Media gathered that on Tuesday, September 2, the new pricing has already taken effect, with truck drivers paying the full N450/SCM, while commercial drivers and private car owners are charged a slightly lower rate of N380/SCM, thanks to partial subsidies.
Price Review and Subsidy Cuts
A senior official of the Presidential Compressed Natural Gas Initiative (PCNGI), who spoke anonymously, confirmed the development, explaining that the price review was necessary.
He said commercial transporters still benefit from subsidies to prevent a steep rise in passenger fares.
“The refuelling stations now sell at different prices depending on the vehicle type,” the source said.
“Trucks that haul goods pay more, while buses and private cars still enjoy a subsidised rate. The aim is to keep public transport costs affordable.”
He added that the government’s current priority is expanding CNG refuelling infrastructure to reduce the long queues that have plagued drivers across the country.
A major CNG retailer also confirmed that NNPC Gas Marketing Limited (NGML) adjusted the pump price.
He warned, however, that costs could rise further.
“The price may go as high as N500 or N600/SCM soon,” the retailer said. “While the government has capped prices since 2023 to encourage adoption, rising costs and reduced subsidies may change that.”
Drivers are beginning to express frustration. Some noted that they had invested N1.5 million or more to convert their petrol-powered vehicles to CNG, only to face higher prices and scarcity.
“Queues stretch as long as 1.5 kilometres in some stations,” said Adeyemi Paul, a ride-hailing driver.
“This defeats the purpose of calling CNG a cheaper and more convenient alternative.”
Since President Bola Ahmed Tinubu removed fuel subsidies in 2023, the price of petrol skyrocketed from N175 to N870 per litre, prompting the government to promote CNG as a cheaper, cleaner alternative fuel.
The Federal Government claimed in June that over 100,000 vehicles had already been converted to CNG within one year, touting it as a major success.
Programme Director of PCNGI, Michael Oluwagbemi, previously insisted that the initiative was helping Nigeria reduce dependence on petrol while easing the burden on citizens.
The Road Ahead
Despite these assurances, the price increase raises fresh doubts over the future of Nigeria’s CNG program. If costs continue to rise and queues remain unmanageable, experts warn that many vehicle owners could abandon CNG and revert to petrol, undermining years of government advocacy.
With another price review looming, stakeholders now wait to see if the government can strike a balance between attracting investors and keeping CNG affordable for ordinary Nigerians.
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