The cost of Compressed Natural Gas has risen to N450 per standard cubic metre after government subsidy cuts.
Journalists gather that truck drivers now pay N450/SCM, while commercial drivers and private owners still pay N380/SCM.
Moreover, retailers confirmed the adjustment, explaining that the Nigerian National Petroleum Company Gas Marketing Limited recently raised prices.,
An official of the Presidential Compressed Natural Gas Initiative (PCNGI), requesting anonymity, explained the current pricing system.
“Trucks transporting goods pay higher rates, while commercial vehicles enjoy subsidies to keep transport fares low,” the source said.
However, despite CNG’s promotion as a cheaper petrol alternative, vehicle owners face long queues at limited refilling stations.
“Our priority is expanding more stations so converted vehicles don’t revert to petrol,” the PCNGI source further explained.
Some drivers expressed frustration, stressing that high conversion costs and rising pump prices make CNG less attractive.
“I spent N1.5m converting my car. With 1.5km queues and higher costs, petrol feels easier,” said Adeyemi Paul.
Additionally, a major retailer told journalists that CNG prices could soon climb further to N500-N600/SCM.
“The government previously capped prices below cost to attract investors. However, this review signals a significant policy shift,” he said.
Meanwhile, PCNGI Programme Director Michael Oluwagbemi highlighted notable progress achieved over the past year despite subsidy removal.
He disclosed that more than 100,000 vehicles now run on Compressed Natural Gas, compared with fewer than 4,000 in 2023.
Furthermore, Nigeria expanded from seven to 265 conversion centres and increased operational refuelling stations from 20 to 60.
Oluwagbemi added that 175 new stations are under development, reinforcing the government’s commitment to scaling infrastructure nationwide.
“Rome wasn’t built in a day. Those who created the subsidy crisis shouldn’t criticise our pace,” he argued.
Nevertheless, many Nigerians fear that escalating costs could derail the country’s transition to affordable alternative fuels.
