Price Hike: No subsidy on CNG – FG

By Obas Esiedesa, Abuja

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

In a statement on Wednesday, PCNGI explained that pricing decisions are determined by private sector players, while assuring that government agencies will continue to protect consumers against 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 said.

The Initiative stressed that it neither sets nor regulates CNG prices, noting that such responsibility lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

It pointed out that since April 2024, the NMDPRA has maintained an incentive-based pricing framework for Auto-CNG that ensures it is always priced lower than petrol and diesel, while empowering the regulator to act against price gouging.

PCNGI added that since the launch of the domestic gas market in June 2025, it has worked with the Gas Aggregation Company of Nigeria (GACN) and NMDPRA to guarantee steady supply and long-term price stability.

“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,” it stated.

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

It acknowledged temporary supply challenges but described them as normal in emerging markets, emphasizing that price adjustments by operators are permissible as long as they remain within regulatory limits.

PCNGI reaffirmed its commitment to working with industry players to expand supply, encourage adoption, and safeguard investor confidence in Nigeria’s CNG sector.

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