The cost of Compressed Natural Gas (CNG) has surged from N230 to N450 per standard cubic metre (SCM), following a recent price review by the Federal Government that reduced existing subsidies.
Our correspondent gathered from retailers that while truck drivers now pay N450/SCM, car owners and commercial drivers enjoy a partial subsidy at N380/SCM. The government had earlier promoted CNG as a cheaper alternative to petrol and diesel after the removal of fuel subsidies in 2023.
An official of the Presidential Compressed Natural Gas Initiative (PCNGI), who requested anonymity, confirmed the price adjustment, explaining that commercial drivers pay less to prevent a hike in transport fares. “The refuelling stations now sell at different prices for cars and trucks. So, the price depends on the type of vehicle, whether it is a commercial bus, a truck or a private car,” the source said.
Retailers also disclosed that the price was reviewed upward by NNPC Gas Marketing Limited (NGML). One major dealer warned that prices may rise further to N500 or N600/SCM in the coming months to attract investors.
Meanwhile, users have expressed frustration over persistent long queues at filling stations, with some stretching up to 1.5 kilometres. “Some spent up to N1.5m or more to convert their vehicles to CNG. Now with the price increase and the long queues, many may have to return to petrol,” lamented Adeyemi Paul, a ride-hailing driver.
Industry watchers warn that unless the government expands the number of refuelling stations and addresses the widening price gap with petrol, vehicle owners may abandon CNG.
Despite the challenges, the Federal Government maintains that significant progress has been made in expanding CNG use nationwide. According to PCNGI Programme Director Michael Oluwagbemi, the number of CNG-powered vehicles has grown from fewer than 4,000 to nearly 100,000 in just over a year, with 60 operational refuelling stations and 175 more in the pipeline.
Oluwagbemi stressed that the initiative remains central to cushioning the effects of fuel subsidy removal, adding, “Rome wasn’t built in a day. Those who led Nigeria into the fuel subsidy crisis cannot fairly criticise the speed at which we’re addressing it.”
