Transporters and vehicle owners using Compressed Natural Gas (CNG) as fuel expressed frustration over the rising cost of CNG following government’s price adjustment, which increased the price from N230 to N380 per standard cubic metre (SCM) for transport vehicles while trucks now pay N450/SCM.
This is even as marketers attribute the hike to the rising cost of infrastructure support and distribution challenges.
LEADERSHIP finding reveals that marketers have adjusted the pump price of CNG across the country, while investor apathy weakens the spread of refilling outlets.
Our correspondent, who monitored the development, found that Greenville Energy has adjusted its price to N450 per standard cubic metre (SCM), while AY Shafa and Portland are selling at N380 per SCM. The product previously sold for N250 per SCM.
Our findings also show that NipCo Gas Limited sells for N445 per SCM.
Speaking with our correspondent on the development, the Corporate Relations manager of NipCo Group, Biodun Lawal, attributed the increase to the cost of infrastructure development, which he said had significantly impacted investors’ running costs.
He said that though the government was sustaining gas prices, which have remained unchanged, operating costs have resulted in marketers adjusting prices to recover costs.
Lawal said that while the number of vehicle conversions was on the rise, there had been little investment in refuelling facilities. This is now putting pressure on a few available stations, resulting in long queues in places where they exist.
Our correspondent reports that collaboration between NipCo and the Nigerian National Petroleum Company limited (NNPCL) that targets establishing about 35 stations is still dragging with fewer than 20 stations inaugurated under the arrangement. It was also gathered that Abuja, the federal capital territory, had about 10,000 vehicles running on CNG; only about six stations are available to service that huge number of vehicles.
Lawal said the CNG adoption had gained momentum after the removal of fuel subsidy in 2023, as rising fuel prices created demand for a more affordable and sustainable energy alternative.
He said, however, that the penetration was still very low as the cost of conversion and conversion facilities were very high.
While the Programme director of the Presidential Compressed Natural Gas Initiative (PCNGI), Engr Michael Oluwagbemi, has not 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.
Speaking on behalf of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), Comrade Jolaiya Seun Moses, who serves as the union’s Business Partnerships and Proposals manager, expressed deep frustration over the sudden jump in gas prices. “Gas per standard cubic meter (SCM) is now N380, up from N230,. This price has reflected in all stations. Even those who weren’t part of the initial increase have now joined in,” he said.
According to Moses, the implications of this hike go far beyond economics. He warned that the move is eroding public confidence in the government’s energy transition agenda. “People didn’t trust the government before, and now it’s beginning to look like the government is using this CNG initiative to trap citizens,” he said.
Reflecting on his own experience, Moses shared that, he was among the early adopters of CNG conversion and had actively encouraged others to follow suit. “I was convincing others to convert, but some were reluctant. They said gas was cheap now, but it wouldn’t stay that way. Sadly, they were right.”
He noted that, when he first converted, gas was sold for as low as N180 per SCM. ‘Then it went to N210, then N230. Now it’s N380. If you go to any CNG sales centre now, everybody is lamenting and complaining.’
Beyond pricing, Moses highlighted several operational challenges that compound the frustration. “First, you queue before you get the gas. The stations aren’t nearby, so you must drive long distances. Now, with the price increase, it’s sending a very wrong signal to anyone considering CNG as an alternative fuel.”
He added that even those who had already converted now feel trapped. To him, ‘they raise the price and nobody can do anything about it. You can decide to raise the price again at any time. People just feel helpless.’
For AUATON members, the message to the government has been consistent: stabilise the price of gas. “The government campaigned that CNG is the alternative fuel and citizens should migrate to gas. So that gas should have a stable price. It shouldn’t be raised multiple times within a year. You’ve raised the price three times within a year now,” he added.
Moses also criticised the regulatory framework, arguing that gas was being treated like petrol, with prices changing abruptly. To him, “The gas management team in Nigeria is still the same team that manages petrol. It’s not as if they’ve set up a different body to regulate gas prices separately.”
The Presidential Compressed Natural Gas Initiative (PCNGI) was established to accelerate nationwide adoption. It provides free vehicle conversion for commercial drivers affiliated with unions at approved centres.
Converted vehicles can operate in hybrid mode, switching seamlessly between petrol, diesel, and CNG. Safety features including reinforced cylinders, pressure-release valves, and automatic shut-off sensors ensure secure operation.
Daughter stations have increased from 20 to over 65, attracting more than $450 million in investment, training over 2,500 technicians, and operating across 21 states.
Additionally, PCNGi signed a $27.3 million MoU with LNG Arete Ltd. in April 2025 to construct a gas plant in Northern Nigeria with a processing capacity of seven million standard cubic feet per day (MMSCFD) to address regional energy gaps.
Nonetheless, Lawal observed that this had not led to the expected growth rate, considering the potential impact of the new fuel.
According to reports, the cost comparison between fuels covering 100 kilometres shows a clear gap.
Using CNG, at the lower retail price of N230 per standard cubic meter (SCM), a motorist would spend just about N3,450, while at the higher end of N500/SCM, the same distance would cost roughly N7,500.
On the other hand, with petrol priced between N830 and N880 per litre, a motorist would spend between N12,450 and N14,940 at N830, or between N13,200 and N15,840 at N880, to travel the same 100 kilometers.
Diesel, at an average of N1,000 per litre, would cost between N15,000 and N18,000 for the same trip.
This breakdown shows that CNG remains significantly cheaper than both petrol and diesel, even at the high retail price of N500/SCM, yet the level of shift is still very low.
