The cost of Compressed Natural Gas (CNG) in Nigeria has risen sharply from N230 to N450 per standard cubic metre (SCM), sparking concerns among vehicle owners and transport operators. The increase, confirmed by retailers and industry officials, comes amid long queues and insufficient refilling stations nationwide.
According to findings by 9am News report, the Federal Government, through NNPC Gas Marketing Limited (NGML), reviewed the price upward after reducing subsidies. Under the new arrangement, trucks are required to pay N450/SCM, while private cars and commercial drivers still enjoy partial subsidies at N380/SCM.
An official of the Presidential Compressed Natural Gas Initiative (PCNGI), who spoke anonymously, explained that commercial drivers pay less to prevent a spike in transportation fares.
“The refuelling stations now sell at different prices for cars and trucks. Trucks transporting goods pay higher, while buses and cars conveying passengers buy at a reduced rate. There’s supposed to be a subsidy across the board, but this is the current situation,” the source noted.
He added that the major focus of the PCNGI is to expand CNG availability nationwide. “Our main focus is to increase the availability of gas. Some vehicle owners convert to CNG but end up running on petrol due to scarcity. We’re working to build more stations across the country so this will no longer be an issue,” he said.
Queues, High Conversion Costs, and Rising Frustration
Despite the government’s push, motorists continue to face frustration. Long queues stretching over 1.5 kilometres have been reported at some refuelling points.
Adeyemi Paul, a Lagos-based ride-hailing driver, told our correspondent that the rising cost and poor availability could force many drivers back to petrol.
“Some of us spent more than N1.5 million to convert our cars to CNG. Now, with the price increase and endless queues, many drivers are discouraged. The government has been promoting CNG as cheaper fuel, but in reality, the difference compared to petrol is not as big as they claim,” he said.
A major CNG retailer confirmed that the upward review was carried out by NGML, noting that the government had capped prices below cost since 2023. He warned that prices could rise even further, possibly reaching N500 or N600/SCM, in order to attract private sector investment.
“The government subsidised it heavily to encourage usage, but going forward, higher prices may be inevitable to make the industry viable,” the retailer stated.
Federal Government’s Push for Adoption
Since President Bola Tinubu removed petrol subsidies in 2023—causing the price of petrol to jump from N175 to N870 per litre—the government has promoted CNG as a cheaper and cleaner alternative.
In June, the Federal Government announced significant progress:
- Over 100,000 vehicles converted to CNG within one year.
- Conversion centres increased from 7 to 265 nationwide.
- Refuelling stations expanded from 20 in late 2023 to 60, with 175 more in development.
- Over 10,000 direct jobs created across the CNG value chain.
Programme Director of PCNGI, Michael Oluwagbemi, has defended the pace of implementation. “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,” he said.
While the Federal Government insists that CNG remains a sustainable alternative, the latest hike in price and persistent scarcity have raised doubts about the programme’s future. Unless infrastructure expansion keeps pace with demand, there are fears that adoption may slow down, with many Nigerians reverting to petrol despite its soaring cost.
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