The Presidential Compressed Natural Gas Initiative (PCNGI) has clarified that the Federal Government does not subsidize Compressed Natural Gas (CNG), addressing public concerns over recent pump price increases by some operators.
In a statement released on Wednesday, the PCNGI emphasized that pricing is determined by private sector players, with government agencies focused on protecting consumers from exploitation.
The statement highlighted a recent price adjustment by NIPCO Gas, a private operator in the Auto-CNG market, which raised CNG prices to as high as N450 per standard cubic meter (SCM) in some regions.
“NIPCO is one of several investors in the sector and, like other operators, retains the discretion to set prices in line with its business and commercial realities,” the PCNGI noted.
It clarified that it neither sets nor regulates CNG prices, a responsibility held by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Since April 2024, the NMDPRA has enforced an incentive-based pricing framework ensuring CNG remains cheaper than petrol (N830–N880 per liter) and diesel (above N1,000 per liter), while empowering the regulator to curb price gouging.
The PCNGI, in collaboration with the Gas Aggregation Company of Nigeria (GACN) and NMDPRA, has worked to ensure a steady CNG supply and long-term price stability since the domestic gas market’s launch in June 2025.
The Initiative rejected comparisons to the opaque subsidies that plagued the petrol (PMS) and diesel (AGO) sectors, stating, “The CNG sector is being developed as a transparent, investment-driven market where healthy competition will drive costs down over time.”
It highlighted that over $1 billion in investments has flowed into the CNG sector in the past 18 months under President Bola Ahmed Tinubu’s administration, fueling infrastructure growth and vehicle conversions.
While acknowledging temporary supply challenges, described as typical for emerging markets, the PCNGI assured consumers that price adjustments by operators are permissible within NMDPRA’s regulatory limits.
The Initiative reiterated its commitment to fostering a competitive CNG market to support Nigeria’s transition to cleaner, more affordable energy.
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