The Presidential Compressed Natural Gas Initiative (PCNGI) has clarified that the recent increase in CNG pump prices from N230 per Standard Cubic Metre (SCM) was the result of decisions by private operators, and not a directive from the Federal Government.
The statement was made on Thursday in Abuja by Matilda Johnson, Brands and Corporate Communications Manager at PCNGI, following reports suggesting otherwise, according to the News Agency of Nigeria (NAN).
Johnson described claims that the government had removed subsidies or ordered price increases as misleading and false, reiterating that CNG remains significantly cheaper, cleaner, and more sustainable than Premium Motor Spirit (PMS) and diesel, in line with President Bola Tinubu’s directive to promote the CNG mobility market.
“The Presidential Initiative on Compressed Natural Gas (P-CNGI) says no directive or policy has been issued by the Federal Government to alter CNG pump prices nationwide.
“Matilda Johnson, Brands and Corporate Communications Manager, P-CNGI, said this on Thursday in a statement made available to the News Agency of Nigeria (NAN) in Abuja,” the NAN report read in part.
It added, “The P-CNGI emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.”
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PCNGI further noted that pricing matters fall under the jurisdiction of regulatory agencies, but the government’s role is to ensure CNG adoption as an affordable alternative fuel.
- Some private marketers recently adjusted prices to about N380 per Standard Cubic Metre (SCM), up from the previous N230.
- Johnson added that the sector has attracted nearly $1 billion in private investment, highlighting confidence in the potential of the CNG market.
She said PCNGI’s focus remains on deepening CNG penetration nationwide and encouraging wider private sector participation to make the fuel accessible and affordable.
What you should know
Nigeria’s CNG journey began in 2023 after the Tinubu administration removed fuel subsidies, driving up petrol and diesel prices. The Federal Government launched the Presidential Compressed Natural Gas Initiative (PCNGI) to promote CNG as a cheaper, cleaner alternative for motorists.
- CNG was initially priced at N230 per Standard Cubic Metre (SCM), but over time, some private operators have raised it to over N400 per SCM in certain locations.
- Commercial drivers received free vehicle conversions, while states including Lagos, Ogun, Oyo, and Rivers deployed CNG-powered buses and built fueling stations.
- By mid-2025, more than 65 daughter stations were operational across 21 states, supported by over $450 million in investments and trained technicians.
Adoption remains below expectations: as of January 2025, around 50,000 vehicles had switched to CNG, short of the government’s target of one million by 2027.
Experts note that pricing may need to rise slightly to ensure the sector’s sustainability while remaining affordable for motorists.
Thanks for clearing the air on federal government stand on cng price increase. I’ll suggest the federal government set up price regulatory body or task force to monitor dealers or agents who want to sabotage their efforts to make motorists benefit from the initiative