Price Hike: No Subsidy on CNG, FG Clarifies
The Federal Government has dismissed claims of subsidizing Compressed Natural Gas (CNG), insisting that recent price adjustments are market-driven and determined solely by private operators.
In a statement on Wednesday, the Presidential Compressed Natural Gas Initiative (PCNGI) explained that CNG pricing is outside government control, stressing that its role is to ensure transparency and protect consumers from 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.
It clarified that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regulates the sector, not PCNGI. According to the initiative, NMDPRA’s incentive-based pricing framework, introduced in April 2024, ensures that CNG remains cheaper than petrol and diesel while giving the Authority powers to act against price gouging.
Since the domestic gas market was launched in June 2025, PCNGI said it has been working with the Gas Aggregation Company of Nigeria (GACN) and NMDPRA to maintain steady supply and long-term price stability.
Rejecting any return to opaque subsidy regimes, PCNGI stressed that the CNG sector is being developed as a transparent, competitive, and investment-driven market.
“Over $1 billion in investments have been attracted into the CNG sector in the last 18 months under President Bola Ahmed Tinubu’s administration. Protecting these investments requires consistency, transparency, and a market-driven approach,” it stated.
The initiative acknowledged temporary supply challenges but maintained that price adjustments by private operators are normal in a growing market, provided they remain within regulatory limits. It pledged continued collaboration with industry stakeholders to expand supply, encourage adoption, and sustain investor confidence.
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