The Presidential Compressed Natural Gas Initiative (PCNGI) has dismissed a report suggesting that the federal government removed subsidy or increased prices on Compressed Natural Gas (CNG) in the country.
The PCNGI Brands and Corporate Communications Manager, Matilda Johnson, in a statement on Thursday, made this known in reaction to a report alleging that the cost of one standard cubic metre of CNG jumped from N230 to N450 as the federal government withdrew its subsidy.
In her statement, Ms Johnson said the claim is “incorrect” as no directive or policy has been issued by the federal government to alter CNG pump prices.
She added that the recent pump price adjustments announced by certain operators are purely private-sector decisions and not the outcome of any government directive or policy.
“No subsidy removal, no FG price increase,” the statement said, adding that “For absolute clarity: while pricing matters fall under the purview of the appropriate regulatory agencies, no directive or policy has been issued by the federal government to alter CNG pump prices.”
It explained that the mandate of PiCNG, as directed by President Bola Tinubu, is to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative to petrol and diesel across the country.
So far, the statement said, through the collaboration and commitment of relevant government agencies, the sector has witnessed monumental enthusiasm and growth.
The statement said the progress has already attracted “close to $1 billion in private sector investment”, underscoring confidence in the market’s potential.
“It must also be emphasised that the recent pump price adjustments announced by certain operators are purely private-sector decisions and not the outcome of any government directive or policy.
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“The federal government assures Nigerians that CNG will always remain significantly cheaper, cleaner, and more affordable than PMS and diesel.
“Our focus remains on deepening CNG penetration nationwide and encouraging broader private sector participation to ensure availability and affordability for all,” Ms Johnson said.
In August 2023, President Bola Tinubu approved the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI).
The establishment of the initiative was in furtherance of his commitment to easing the impact of fuel subsidy removal on Nigerians by reducing energy costs.