CNG Prices To Rise As FG Maintains No-Subsidy Policy

The Presidential Compressed Natural Gas Initiative (PCNGI) has clarified that the Federal Government does not provide subsidies on Compressed Natural Gas (CNG), following recent pump price adjustments by some operators.

In a statement issued on Wednesday, PCNGI explained that pricing decisions are determined solely by private sector operators, while assuring that regulatory agencies will continue to protect consumers from possible exploitation.

“The recent adjustment in CNG pump price was carried out by NIPCO Gas, a private sector operator in the Auto-CNG market. NIPCO is one of several investors in the sector and, like other operators, retains the discretion to set prices in line with its business and commercial realities,” the statement read.

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The Initiative further noted that it does not set or regulate CNG prices, stressing that the responsibility rests with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

According to PCNGI, since April 2024, the NMDPRA has maintained an incentive-based pricing framework for Auto-CNG, designed to ensure that the product remains cheaper than petrol and diesel, while also empowering the regulator to take action against price manipulation.

It highlighted that since the official launch of the domestic gas market in June 2025, the Initiative has collaborated with the Gas Aggregation Company of Nigeria (GACN) and NMDPRA to guarantee steady supply and long-term price stability for CNG users.

“The era of opaque subsidies that crippled the PMS/AGO sector will not be replicated in the CNG market. Instead, the CNG sector is being developed as a transparent, investment-driven market where healthy competition will drive costs down over time,” the Initiative stated.

PCNGI also disclosed that over $1 billion has been attracted into the Nigerian CNG sector in the last 18 months under the administration of President Bola Ahmed Tinubu.

While acknowledging temporary supply challenges, the Initiative described them as normal occurrences in emerging markets, emphasizing that operators are permitted to adjust prices provided they remain within the regulatory framework.

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