The Federal Government’s push for Compressed Natural Gas (CNG) as an affordable alternative to petrol and diesel is under renewed scrutiny, following a sharp increase in prices and persistent shortages at refuelling stations.
The cost of one standard cubic metre of CNG has nearly doubled, rising from ₦230 to ₦450, after the government quietly reduced its subsidy support. Retailers confirmed that while trucks now pay ₦450/SCM, car drivers and commercial transporters are charged a slightly lower rate of ₦380/SCM.
A senior official of the Presidential Compressed Natural Gas Initiative (PCNGI), who requested anonymity, confirmed the development.
“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,” he explained.
He added that commercial transport operators continue to benefit from subsidies, which help keep public transportation costs within reach.
The price is subsidised for commercial vehicles. Trucks transporting goods pay higher prices, while private cars and buses that convey passengers buy at a reduced rate. There’s supposed to be a subsidy across the board, but this is the current situation,” he said.
Rising costs and supply concerns
Beyond pricing, long queues at the few operational CNG stations have compounded frustrations.
“Our main focus is to increase the availability of gas. We want to build more refuelling stations so that no converted vehicle owner will complain that it doesn’t have a place to buy CNG,” the PCNGI official said.
He acknowledged that many vehicle owners, after investing heavily to convert their petrol-powered engines to run on gas, are being forced back to petrol due to unavailability.
“Some have converted their vehicles, but when gas is not available, they will be running on petrol. So, our major drive right now is to increase the number of CNG stations nationwide,” he explained.
A retailer also confirmed that the price adjustment was made by NNPC Gas Marketing Limited (NGML).
“The Federal Government had capped the price of CNG below its cost since 2023, when petrol subsidies were removed. Now, with the review, the price may rise further to N500 or even N600/SCM to attract more investors,” the retailer said.
