Amid long queues and insufficient refilling stations, the cost of one standard cubic metre of Compressed Natural Gas has jumped from N230 to N450. Our correspondent gathered from retailers that the government reviewed the price recently to N450, reducing its subsidies.
However, while trucks pay N450/SCM, car drivers and commercial drivers still enjoy some subsidies, as they pay N380 for one standard cubic metre of what the government calls a cheaper alternative to petrol and diesel.
The Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, did not answer calls to his phone on Tuesday. However, an official of the PCNGI, who did not want to be mentioned because he was not authorised to speak with the press, confirmed the new development.
The source explained that commercial drivers pay less to ensure the cost of transportation does not go up. “The refuelling stations now sell at different prices for cars and trucks. So, the price depends on the type of vehicle, whether it is a commercial bus, a truck or a private car,” he said.
Asked if the type of vehicle should determine the price of CNG, he said there is a subsidy on commercial vehicles. “The price is subsidised for commercial vehicles. Trucks transporting goods pay higher prices, while private cars and buses that convey passengers buy at a reduced rate. There’s supposed to be a subsidy across the board, but this is the current situation,” the source stated.
Aside from the price, he said the major focus of the PCNGI is to ensure that there are more refilling stations across the country to reduce the long queues.
“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. Some have converted their vehicles, but when gas is not available, they will be running on petrol. So, our major drive right now is to increase the number of CNG stations nationwide, he said.
Speaking with our correspondent, a major retailer of CNG confirmed that NNPC Gas Marketing Limited reviewed the prices. According to the retailer, who requested anonymity, the Federal Government had capped the price of CNG below its cost since 2023, when it removed petrol subsidies.
He added that the price may rise to N500 or N600/SCM soon, stating that this could be to attract investors. “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,” he said.
Meanwhile, there are concerns that vehicle owners may abandon CNG if the queues persist and prices continue to rise. “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.
When you see some refuelling stations, the queues are as long as 1.5km. This is not encouraging,” Adeyemi Paul, a ride-hailing driver, told our correspondent.
Contacted, Louis Ibah, the spokesman for the Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, said he was at a function with the minister and could not talk. The NNPC could not be reached, as it only announced a new spokesperson on Tuesday.
According to him, the number of CNG-powered vehicles in the country had risen from fewer than 4,000 to nearly 100,000 in just over a year. “From just seven conversion centres last year, we now have 265 centres nationwide. We’ve also created over 10,000 direct jobs and grown from 20 to 60 operational refuelling stations, with 175 more underway. So far, we have 60 CNG stations up and running—up from just 20 in late 2023. Over the next three months, we plan to commission an additional 100,” he added.
Defending the pace of implementation, Oluwagbemi stated, “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.” However, there are concerns that the latest rise in the price of CNG may discourage its users.
