CNG Price increases to N450 after subsidy removal

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, according to reports from retailers.

The Federal Government recently reviewed the price, reducing subsidies for the fuel.

While trucks now pay N450/SCM, car owners and commercial drivers continue to benefit from subsidies, paying N380 per SCM for what the government describes 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, an unnamed PCNGI official confirmed the price changes, explaining that subsidies on commercial vehicles aim to prevent a rise in transportation costs. “The refuelling stations now sell at different rates depending on whether it’s a commercial bus, a truck, or a private car,” the source said.

The official added that while the price for trucks is higher, private cars and passenger buses benefit from subsidised rates. “There’s supposed to be a subsidy across the board, but this is the current situation,” he said.

Beyond pricing, the PCNGI is focused on increasing the number of refilling stations nationwide to reduce long queues. “Our main goal is to ensure gas availability. Many converted vehicles still rely on petrol when CNG isn’t accessible. Expanding the number of CNG stations is our priority,” the source said.

A major CNG retailer, speaking anonymously, confirmed that NNPC Gas Marketing Limited had reviewed the prices. The retailer noted that the Federal Government had capped CNG prices below cost since 2023 after removing petrol subsidies. He added that prices could rise further to N500 or N600 per SCM to attract investors.

Concerns are growing that rising costs and long queues may push vehicle owners back to petrol. Ride-hailing driver Adeyemi Paul said, “Some spent up to N1.5 million converting their petrol vehicles to CNG. With higher prices and long queues, many may revert to petrol. The queues, sometimes over 1.5km long, are discouraging.”

Efforts to promote CNG as a cheaper alternative fuel gained traction after the 2023 fuel subsidy removal, when petrol prices jumped from N175 to N870 per litre. By June 2025, over 100,000 vehicles had been converted to CNG, with operational refuelling stations growing from 20 to 60, and 175 more planned. Conversion centres increased from seven to 265, creating over 10,000 direct jobs.

Oluwagbemi defended the initiative’s pace, stating, “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.” Despite progress, the recent CNG price hike has raised fears that adoption of the alternative fuel could slow.

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