The cost of Compressed Natural Gas (CNG) has surged to N450 per standard cubic metre (SCM) for trucks, following a government decision to scale back subsidies, amid reports of long queues and limited refilling stations nationwide.
While truck operators now pay N450/SCM, commercial drivers and private car owners continue to benefit from partial subsidies, paying N380/SCM. The pricing, sources explained, varies based on vehicle type to protect transportation costs for passenger services.
A PCNGI official, speaking anonymously, noted, “There’s a subsidy for commercial vehicles. Trucks carrying goods pay the full price, while private cars and passenger buses pay a lower rate. The government aims to balance affordability with encouraging wider CNG adoption.”
The Presidential Compressed Natural Gas Initiative (PCNGI) is also focusing on expanding refueling infrastructure. Currently, Nigeria has 60 operational CNG stations, up from 20 in late 2023, with 175 more under development. Over the next three months, an additional 100 stations are expected to come online.
Since the removal of petrol subsidies in 2023, the government has promoted CNG as a cheaper alternative. The initiative has seen the number of CNG-powered vehicles grow from under 4,000 to nearly 100,000 within just over a year, with conversion centers increasing from seven to 265 nationwide.
However, some vehicle owners are concerned that rising costs and long queues may discourage continued use of CNG. “Many spent over N1.5 million converting their cars. With higher prices and long waiting lines, some may switch back to petrol,” said Adeyemi Paul, a ride-hailing driver.
NNPC Gas Marketing Limited confirmed the price adjustment, noting that it may rise further to N500 or N600/SCM to attract investors and encourage broader adoption of the alternative fuel.
Despite challenges, PCNGI officials maintain that progress is being made, stressing that efforts to expand the CNG network are ongoing and that the initiative has already created over 10,000 jobs while increasing national CNG accessibility.
