The cost of Compressed Natural Gas (CNG) has sharply risen to N450 per standard cubic metre (SCM) as the Federal Government scales back subsidies, according to retailers and industry insiders. While trucks now pay the full N450/SCM, commercial and private car drivers still enjoy a subsidized rate of N380/SCM. The price hike comes amid long queues and limited refuelling stations, leaving many vehicle owners frustrated.
An anonymous official from the Presidential Compressed Natural Gas Initiative (PCNGI) confirmed the price revision, explaining that commercial vehicles benefit from subsidies to keep transportation costs manageable. “The refuelling stations now sell at different prices depending on the type of vehicle. Trucks transporting goods pay higher rates, while passenger buses and private cars receive some subsidy,” the source said.
Industry insiders suggest the price could rise further, potentially reaching N500–N600/SCM, as part of efforts to attract private investment. A major retailer also noted that the government had capped CNG prices below cost since the removal of petrol subsidies in 2023, which initially promoted CNG as a cheaper fuel alternative. “The government subsidized it to attract users and sold it to marketers at a reduced rate,” the retailer said.
Despite the government’s efforts to encourage CNG adoption, vehicle owners express concern over long queues and rising costs. Ride-hailing driver Adeyemi Paul lamented, “Some people spent up to N1.5 million converting their vehicles to CNG. Now with the queues and price increase, many may return to petrol, as the difference isn’t significant.”
PCNGI says the focus remains on expanding the network of refuelling stations across the country. Programme Director Michael Oluwagbemi highlighted that the number of CNG-powered vehicles has surged from fewer than 4,000 to nearly 100,000 in just over a year, with operational stations increasing from 20 to 60, and plans to add 100 more in the coming months. “Rome wasn’t built in a day. We are steadily growing the infrastructure to meet demand,” Oluwagbemi stated, defending the pace of implementation despite challenges.
Source: Punch