Amid growing queues at refilling stations, the price of Compressed Natural Gas in Nigeria has surged from N230 to N450 per standard cubic metre following a partial withdrawal of federal subsidies. Retailers told The PUNCH that the government recently approved the new rate, forcing truck drivers to pay N450/SCM, while commercial and private car owners are still charged N380 under a limited subsidy scheme.
The Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, could not be reached on Tuesday, but a senior PCNGI official, who asked not to be named, confirmed the development. According to the official, commercial vehicles continue to receive subsidies to prevent a spike in transport fares. “The refuelling stations now sell at different prices for cars and trucks. So, the price depends on the type of vehicle,” he said.
The source added that the PCNGI’s current priority is to expand the number of CNG refilling stations nationwide. “Some have converted their vehicles, but when gas is not available, they will be running on petrol. Our major drive right now is to increase the number of CNG stations across the country,” he explained.
A major retailer, who also spoke under anonymity, confirmed that NNPC Gas Marketing Limited reviewed the rates. The retailer said the government had deliberately capped CNG prices below cost since 2023, when petrol subsidies were removed. He warned that prices may rise further, possibly to N500 or N600/SCM, to attract more private investment.
For many Nigerians, the new increase raises doubts about the government’s promise of cheaper, cleaner fuel. “Some spent up to N1.5m or more to convert their petrol-powered vehicles to CNG. Now with the price increase and the long queues, many may have to return to petrol,” said Adeyemi Paul, a ride-hailing driver. “When you see some refuelling stations, the queues are as long as 1.5km. This is not encouraging.”
Efforts to reach Louis Ibah, spokesman for the Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, were unsuccessful as he was attending an event with the minister. The NNPC also could not be reached for comment, after only recently naming a new spokesperson.
When President Bola Tinubu announced the removal of petrol subsidies in 2023, fuel prices skyrocketed from N175 per litre to N870. To cushion the blow, the Federal Government launched a nationwide push for CNG as a cheaper alternative, encouraging motorists to convert their vehicles.
By June, the government said more than 100,000 vehicles had been converted to run on CNG, up from fewer than 4,000 in 2023. Officials also reported growth from just seven conversion centres to 265 nationwide, alongside the creation of over 10,000 jobs. Refuelling stations increased from 20 to 60, with 175 more under development.
Defending the pace of the rollout, Oluwagbemi argued, “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.” But with the latest jump in CNG prices, analysts warn that the government risks losing public confidence in its flagship clean energy initiative.
