FG reacts, clarifies role in CNG price hike

The Presidential Compressed Natural Gas Initiative (PCNGI) has explained that the Federal Government does not give subsidies on Compressed Natural Gas (CNG). This comes after some companies recently increased pump prices.

According to a statement, the price of CNG is determined only by private companies. However, government agencies will continue to make sure consumers are not exploited.

“The latest change in CNG price was made by NIPCO Gas, a private company in the Auto-CNG market. Like other investors, NIPCO has the right to set its prices based on its business needs,” the statement said.

PCNGI noted that it does not control or fix prices. That responsibility belongs to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Since April 2024, NMDPRA has kept an incentive-based pricing system for Auto-CNG. This ensures CNG is always cheaper than petrol (PMS) and diesel, while also allowing action against unfair price hikes.

The statement also explained that since June 2025, PCNGI has been working with the Gas Aggregation Company of Nigeria (GACN) and NMDPRA to ensure steady supply and long-term price stability.

It added that there will be no return to hidden fuel subsidies that previously damaged the petrol and diesel sector. Instead, the CNG market will be open and investment-driven, with competition expected to reduce costs over time.

So far, over $1 billion has been invested in Nigeria’s CNG sector in the past 18 months under President Bola Tinubu’s administration. PCNGI stressed that protecting these investments requires consistency, transparency, and a market-based system.