CNG Price Jumps Amid Scarcity, Raising Fears of Abandonment by Vehicle Owners

The price of Compressed Natural Gas (CNG), promoted as Nigeria’s cheaper alternative to petrol, has surged from N230 to N450 per standard cubic metre (SCM), sparking concern among motorists already facing long queues and a shortage of refilling stations.

Retailers confirmed that the Federal Government recently reviewed the price, cutting back subsidies. While truck operators now pay the full N450/SCM, commercial and private drivers still enjoy partial subsidies, paying N380/SCM to cushion transport costs.

An official of the Presidential Compressed Natural Gas Initiative (PCNGI), who spoke anonymously, explained that the pricing model was designed to shield passengers from higher fares. “There’s a subsidy for commercial vehicles, but trucks transporting goods pay more” the source said. The official added that PCNGI’s immediate priority is expanding the number of refuelling stations to ease shortages nationwide.

NNPC Gas Marketing Limited was said to have implemented the new pricing. A major CNG retailer disclosed that the government had long capped prices below cost to attract users but warned rates could rise further to N500–N600/SCM to encourage private investment.

Motorists, however, fear the scheme may lose momentum. Some drivers who spent up to N1.5m converting vehicles now complain that rising prices and 1.5km-long queues make CNG less appealing compared to petrol. “The difference between petrol and CNG is no longer significant” lamented ride-hailing driver Adeyemi Paul.

Government officials have remained largely silent on the matter. PCNGI Programme Director, Michael Oluwagbemi, could not be reached, while the spokesperson for the Minister of Petroleum Resources (Gas), Louis Ibah, declined comment.

The initiative, launched after President Bola Tinubu’s removal of petrol subsidies in 2023, has achieved rapid growth: from fewer than 4,000 CNG-powered vehicles to nearly 100,000 within a year, 265 conversion centres, and 60 functional refuelling stations, with 175 more in progress. Oluwagbemi defended the rollout pace, saying, “Rome wasn’t built in a day” while touting job creation and expansion efforts.

Still, the latest price hike and supply constraints risk undermining public confidence in CNG, the very alternative fuel meant to cushion Nigerians against the impact of soaring petrol prices.