In the wake of recent increases in pump prices for Compressed Natural Gas (CNG) by various operators, the Presidential Compressed Natural Gas Initiative (PCNGI) has issued a formal clarification that the Federal Government does not subsidize CNG. This announcement comes amid widespread concerns and speculation among consumers regarding the rising costs of CNG in Nigeria.
According to the statement from PCNGI, the hikes in CNG prices are attributable to factors within the private sector, primarily market-driven adjustments by operators. The government, through its agencies, maintains a regulatory role intended to safeguard consumer interests and facilitate the growth of cleaner energy alternatives, but it does not provide direct subsidies to CNG prices. Recent reports indicate that some operators have raised the cost of CNG to as much as ₦450 per standard cubic meter (SCM), nearly doubling previous prices, a move that has sparked public debate over affordability and sustainability.
The clarification reinforces that the Federal Government’s involvement in the CNG sector has historically centered on infrastructure investments and incentives aimed at promoting adoption rather than subsidizing fuel prices. With the removal of general fuel subsidies in May 2023, pricing adjustments for alternative fuels like CNG have followed suit. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) oversees regulatory frameworks, ensuring that CNG remains a competitively priced option compared to petrol and diesel, but the actual pricing rests with private operators who account for market conditions and operational costs.
These developments arrive against a backdrop of sustained government commitment to foster a cleaner and more sustainable energy mix through initiatives like the PCNGI, which has directed over one billion dollars into the sector. However, recent price surges and supply challenges have heightened concerns about the long-term affordability and accessibility of CNG for everyday Nigerians.