CNG Price Rises From N230 to N450 Amid Long Queues and Limited Refilling Stations

The price of Compressed Natural Gas (CNG) has surged from N230 to N450 per standard cubic metre amid long queues and a shortage of refilling stations, sources say. Retailers confirmed that the government recently revised the price, reducing subsidies.

While trucks now pay N450/SCM, car owners and commercial drivers still benefit from some subsidy, paying N380 per standard cubic metre. The government promotes CNG as a cheaper alternative to petrol and diesel.

Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI), did not respond to calls on Tuesday. However, a PCNGI official, speaking anonymously, confirmed the price review and explained the difference in pricing for vehicles.

“The refuelling stations now sell at different rates for cars and trucks. Commercial vehicles benefit from a subsidy to prevent a hike in transport costs,” the source said. Trucks transporting goods pay higher prices, while private cars and passenger buses enjoy reduced rates.

The official added that expanding refilling stations remains the PCNGI’s top priority to ease long queues. “Our main focus is to increase the availability of gas. We want to build more refuelling stations so that converted vehicle owners are not forced to revert to petrol,” he said.

A major CNG retailer, requesting anonymity, confirmed that NNPC Gas Marketing Limited reviewed the prices. According to him, the government had kept CNG prices below cost since 2023, when petrol subsidies were removed. He added that prices could rise to N500 or N600/SCM to attract investors.

Concerns are mounting that vehicle owners may abandon CNG if queues persist and prices continue to rise. “Some spent up to N1.5m or more to convert their vehicles. With rising costs and long queues, many may return to petrol. The difference between CNG and petrol isn’t significant, and queues of 1.5km are discouraging,” said Adeyemi Paul, a ride-hailing driver.

The Petroleum Resources Ministry’s spokesperson, Louis Ibah, said he could not comment as he was attending a ministerial function, while NNPC could not be reached following the announcement of a new spokesperson.

CNG was promoted as a cheaper alternative after President Bola Tinubu removed the fuel subsidy in 2023, when petrol prices jumped from N175 to N870 per litre. The Federal Government said in June that over 100,000 vehicles had been converted to CNG within a year, up from fewer than 4,000.

Oluwagbemi highlighted the progress: “From seven conversion centres last year, we now have 265 nationwide. Direct jobs created exceed 10,000, and operational refuelling stations have increased from 20 to 60, with 175 more underway. We plan to commission an additional 100 stations in the next three months.”

Defending the pace of implementation, he stated, “Rome wasn’t built in a day. Those responsible for the fuel subsidy crisis cannot fairly criticise how quickly we are addressing it.” However, analysts warn that the recent price increase could discourage users of the alternative fuel.