By Ali Elias
The cost of Compressed Natural Gas (CNG), promoted by the Federal Government as a cheaper alternative to petrol and diesel, has risen sharply from N230 to N450 per standard cubic metre, compounding the woes of motorists already grappling with long queues at limited refilling stations.
Retailers confirmed that the Nigerian National Petroleum Company Limited’s gas subsidiary, NNPC Gas Marketing Limited, recently reviewed the official price. While truck owners now pay N450/SCM, commercial drivers continue to enjoy partial subsidies at N380/SCM in a bid to keep transport fares stable.
An official of the Presidential Compressed Natural Gas Initiative (PCNGI), who spoke on condition of anonymity, explained that the government deliberately subsidised CNG for commercial vehicles to prevent transport costs from spiralling. “There’s supposed to be a subsidy across the board, but the focus now is on buses and taxis to cushion the effect on commuters,” the source said.
The sharp increase, coupled with the persistent scarcity of filling stations, has raised doubts about the sustainability of the CNG programme. Motorists who invested heavily in conversions are beginning to express frustration. Adeyemi Paul, a ride-hailing driver, lamented: “Some of us spent over N1.5 million to convert our cars to CNG. With the queues and price hikes, the difference with petrol is no longer encouraging. Many may go back to petrol.”
Retailers also warned that prices could rise further to N500 or even N600/SCM in the coming months, arguing that the review was necessary to attract private investors into the market.
Despite the challenges, officials insist progress is being made. PCNGI says more than 100,000 vehicles have been converted from petrol to CNG within a year, up from fewer than 4,000 before subsidy removal in 2023. The number of refuelling stations has grown from 20 to 60, with 175 more planned nationwide. Programme Director Michael Oluwagbemi recently argued that CNG remains the most viable path to reducing Nigeria’s reliance on expensive petrol imports. “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,” he said.
The rising CNG prices present a double-edged sword for the economy. On one hand, higher prices could attract the private capital needed to expand infrastructure and reduce Nigeria’s reliance on petrol imports—freeing up foreign exchange and boosting domestic energy security. On the other, if prices climb too quickly, motorists may abandon CNG, undermining the government’s strategy to ease transport costs, reduce inflationary pressure, and create thousands of jobs in the gas value chain. For an economy already battling inflation above 30 percent, analysts warn that the success or failure of the CNG programme could significantly shape Nigeria’s energy transition and transport costs in the years ahead.
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