CNG price increase Nigeria sees costs jump to N450/SCM, sparking concerns as drivers face subsidy cuts, long queues, and possible petrol return

CNG price increase Nigeria has unsettled vehicle owners after the cost of one standard cubic metre surged from N230 to N450, with drivers facing long queues and fewer refuelling stations nationwide.

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Retailers confirmed that the federal government recently reviewed the price, cutting subsidies in the process. Trucks now pay the full N450/SCM, while commercial drivers pay N380, thanks to partial subsidies aimed at keeping transport fares stable.

A source within the Presidential Compressed Natural Gas Initiative (PCNGI) explained the two-tier pricing:

“The refuelling stations now sell at different prices for cars and trucks. The price is subsidised for commercial vehicles, but trucks transporting goods pay higher.”

However, beyond pricing, the PCNGI stressed that its main focus is building more refuelling stations to ease pressure on existing outlets.

“Some have converted their vehicles, but when gas is not available, they run on petrol. Our major drive now is to expand access nationwide,” the source said.

A major retailer confirmed that NNPC Gas Marketing Limited revised the price and hinted that it could climb further. “The price may rise to N500 or N600/SCM soon.

The government subsidised it to attract users, but the difference between CNG and petrol is narrowing,” he warned.

Drivers are already voicing frustration. Ride-hailing driver Adeyemi Paul told our correspondent: “Some spent up to N1.5m or more to convert their cars to CNG. With the price hike and 1.5km-long queues, many may return to petrol.”

The federal government has promoted CNG as a cheaper, cleaner alternative since the 2023 fuel subsidy removal pushed petrol prices from N175 to N870 per litre.

Officials say progress has been made, with CNG-powered vehicles rising from fewer than 4,000 to nearly 100,000 in one year, alongside 265 conversion centres and 60 operational refuelling stations.

Programme Director Michael Oluwagbemi defended the pace of expansion, saying, “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.”

Also read: NNPC Gas Joint Venture Boosts CNG, LNG Supply in Nigeria

Still, concerns remain that rising CNG costs and persistent scarcity could stall adoption of the government’s flagship alternative fuel policy.