The price of compressed natural gas (CNG) has climbed to N380 per standard cubic metre (SCM) for cars and buses at retail outlets in Lagos and Abuja, marking a sharp increase of N150 from the previous rate of N230.
Checks at filling stations show uniform pricing across key outlets. At the NIPCO station in Ibafo, Ogun State, as well as the Mobil CNG station in Apapa, Lagos, and a NIPCO outlet in Abuja, the new retail price is N380 per SCM. Lorries and heavy-duty vehicles will now pay N450 per SCM, according to station officials.
A source at NIPCO, who spoke to TheCable on condition of anonymity, said the new pricing was set by NNPC Gas Marketing Limited (NGML), the state-owned supplier responsible for distributing CNG nationwide.
“The price is set by NGML and it doesn’t matter whether it’s Lagos, Ajaokuta, or Benin. The rate is N380 for cars and N450 for lorries,” the source said. “The price was just increased without explanation. It’s not fair on motorists who spent millions converting their vehicles. Before long, the cost of CNG will almost be the same as petrol.”
The increase has raised concerns among motorists and transport operators who embraced CNG as a cheaper, cleaner alternative to petrol following the federal government’s push under the Presidential Compressed Natural Gas Initiative (PCNGI). Launched in October 2023, the initiative included incentives such as waivers on value-added tax (VAT) for CNG bus purchases to encourage adoption.
However, with prices rising steadily, stakeholders fear that the original promise of affordability may be undermined, potentially discouraging more Nigerians from switching to gas-powered vehicles.