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CNG price jumps to ₦450 as subsidies shrink

The federal government trims subsidies on CNG while promising to establish more refuelling stations nationwide.

Compressed Natural Gas (CNG), promoted by the Federal Government as the cheaper alternative to petrol and diesel, is fast becoming more expensive for motorists. In recent weeks, the pump price has surged from ₦230 to as high as ₦450 per standard cubic metre, following a government-backed review that trimmed subsidies and moved prices closer to market reality.

Officials say the adjustment is aimed at attracting investors and expanding refilling stations nationwide, but for drivers already queuing for hours, the immediate effect is more pain than relief.

Retailers confirmed that NNPC Gas Marketing Limited reviewed the prices upward. Trucks now pay ₦450/SCM, while commercial buses and private cars enjoy partial subsidies at ₦380/SCM to keep transport fares from rising sharply.

An official of the Presidential Compressed Natural Gas Initiative (PCNGI), who asked not to be named, told the Punch that the different pricing was deliberate. “The price depends on the type of vehicle. Commercial buses and private cars pay less because of the subsidy, while trucks transporting goods pay more,” the source said.

Even so, there are fears the cost could rise further. A major retailer told our correspondent that CNG might soon sell for ₦500 or even ₦600 per SCM. According to him, the Federal Government had capped the product below cost since 2023 to boost adoption after petrol subsidies were scrapped, but is now easing off to encourage private investment.

Also Read: CNG adoption grows among Abuja keke riders

The price hike comes at a time when availability is still a major challenge. Many converted vehicle owners complain of waiting in long queues stretching over a kilometre at the few operational refilling stations. Some fear that motorists may abandon CNG altogether if costs keep climbing. “I spent over ₦1.5 million to convert my car, but with the new price and these endless queues, it is no longer encouraging. Many people may have to return to petrol,” said Adeyemi Paul, a Lagos-based ride-hailing driver.

Officials of the PCNGI maintain that the long-term benefits remain. They point to progress made in one year: over 100,000 vehicles converted from petrol to CNG compared to fewer than 4,000 previously, 265 conversion centres now in operation (up from just seven), and 60 refilling stations active with 175 more in development.

Programme Director Michael Oluwagbemi has also said the initiative has created more than 10,000 jobs and insisted that the focus remains on building more refuelling outlets across the country.

The government insists CNG still offers savings compared to petrol, whose price jumped from ₦175 per litre to ₦870 after fuel subsidies were removed in 2023. But with queues growing and the price gap narrowing, the question for many motorists is whether the “cheaper alternative” can live up to its promise.

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