CNG Price Hits N450 Per SCM Amid Long Queues, Subsidy Cuts

The price of Compressed Natural Gas (CNG) has surged from N230 to N450 per standard cubic metre (SCM) amid long queues and limited refilling stations
following a government review that reduced subsidies.

While trucks now pay the full N450/SCM, commercial drivers still enjoy partial subsidies, paying N380/SCM.

While the Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI), Engr Michael Oluwagbemi, has reacted to the hike, an initiative official who pleaded anonymity confirmed the new pricing structure.

According to the source, the lower tariff for commercial vehicles was intended to prevent rising transport costs.

“Refuelling stations now sell at different prices depending on the type of vehicle. Trucks transporting goods pay higher rates, while buses conveying passengers and private cars pay less due to subsidies,” the source explained.

The official added that the initiative’s focus is expanding refilling stations to reduce persistent queues.

“Some vehicle owners have converted their engines but are forced to run on petrol when gas isn’t available. Our priority is increasing nationwide access to CNG,” he said.

A major CNG retailer also confirmed that NNPC Gas Marketing Limited recently adjusted the prices, noting that the Federal Government had capped CNG below cost since petrol subsidies were scrapped in 2023.

“The new price is N450/SCM for trucks and N380 for commercial drivers. It may rise to N500 or N600 soon to attract investors,” the retailer said, warning that higher costs could push some motorists back to petrol.

For many drivers, long queues remain a bigger concern.

“Some people spent up to N1.5m converting their vehicles. Now, with queues stretching over a kilometre and rising prices, the difference between CNG and petrol is not encouraging,” said Adeyemi Paul, a ride-hailing driver.

Efforts to reach the Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, were unsuccessful, as his spokesman, Louis Ibah, said he was at an event.

The NNPC also could not be reached after announcing a new spokesperson on Tuesday.

LEADERSHIP recalls that following President Bola Tinubu’s 2023 fuel subsidy removal, petrol prices jumped from N175 to N870 per litre.

The federal government promoted CNG as a cheaper alternative to cushion the impact, encouraging vehicle owners to switch.

Government data shows that in just over a year, the number of CNG-powered vehicles rose from fewer than 4,000 to nearly 100,000, with conversion centres expanding from seven to 265 and operational refuelling stations growing from 20 to 60.

An additional 175 stations are reportedly under development.

Defending the pace of implementation, Oluwagbemi recently argued that progress was significant.

“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.

Industry observers warn that rising prices and supply shortages could undermine the government’s efforts to popularise CNG as an affordable fuel alternative.