The price of Compressed Natural Gas (CNG) has surged to N450 per standard cubic meter, marking a significant increase from the previous price of N230.
This development comes amidst long queues at refilling stations and a shortage of CNG infrastructure across the country.
According to reports from retailers, the Federal Government has reduced subsidies on CNG, leading to the price hike. However, the government has maintained a tiered pricing system, with car drivers and commercial drivers paying N380 per standard cubic meter, while trucks pay N450.
An official of the Presidential Compressed Natural Gas Initiative (PCNGI) explained that the price difference is intended to ensure that the cost of transportation does not increase for commercial drivers.
“The price is subsidized for commercial vehicles. Trucks transporting goods pay higher prices, while private cars and buses that convey passengers buy at a reduced rate,” the official told Punch anonymously.
Despite the government’s efforts to promote CNG as a cheaper alternative to petrol, concerns are growing that the price hike and long queues at refilling stations may discourage users.
Many vehicle owners have invested heavily in converting their petrol-powered vehicles to CNG, and the recent price increase may lead them to reconsider their decision.
A ride-hailing driver, Adeyemi Paul, expressed his concerns, saying, “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. The government has been trying to convince the people that there is cheaper fuel. The government sold it to marketers at a reduced price. In reality, the difference between CNG and petrol is not significant.”
The PCNGI has acknowledged the challenges and is working to increase the availability of CNG refilling stations across the country.
According to the Programme Director, Michael Oluwagbemi, “Our main focus is to increase the availability of gas. We want to build more refuelling stations so that no converted vehicle owner will complain that it doesn’t have a place to buy CNG.”
A CNG retailer confirmed that the price hike is due to the reduction in subsidies, saying, “I can confirm that the price for CNG was reviewed upward by NGML. Truck drivers are to pay N450/SCM, while commercial drivers will pay N380/SCM. We know that the price may go to N500 or N600 soon. The government subsidised it to attract users and it sold it to marketers at a subsidised rate.”
