Motorists across Nigeria have expressed mixed feelings following Monday’s increase in the price of Compressed Natural Gas (CNG), which rose from N230 to N380 per Standard Cubic Metre (SCM) at several independent filling stations.

Major filling stations, including NIPCO CNG and Mobil, raised their pump prices from N230 to N380 on Monday.

However, during a visit to the NNPCL station in the Central Business District of Abuja, our reporter observed that prices remained unchanged.

While the reason for the sudden hike is unclear, Daily Trust gathered that NIPCO Plc’s supply contract has allegedly expired, with NNPC now taking over.

Motorists lament

For many drivers, the price surge has triggered frustration over what they fear could erode the cost advantage of CNG over petrol.

Hakeem Idris, a ride-hailing driver, described the development as discouraging. “Many Bolt drivers spend up to 10 hours in queues or drive long distances just to refill. Now with this sudden increase, the whole idea of CNG being cheaper is at risk.”

Another motorist, Basil Duniya, said CNG had helped him save as much as N43,000 weekly. “I invested in conversion because it was affordable. But if prices keep going up, the difference with petrol will disappear,” he said.

Private car owner Mustapha Ahmed urged government support instead of price hikes. “CNG was the last hope for ordinary Nigerians. At N230, it made sense. Increasing it now, while we are still asking for more filling stations and incentives, is unfortunate,” he said.

Commercial driver Uche Ogbu admitted he expected an increase, but not so soon. “We just started enjoying the benefits. If it rises again beyond N380, many of us taxi drivers may abandon it,” he warned.

Another driver, Bassey Effiong, said he recently installed an extra CNG cylinder to reduce refilling stress, only to be hit by the price hike. “It feels like wasted money. My appeal is that the government should ensure stability at least.”

Edo

In Edo State, motorists confirmed the price had jumped from N200 to N380.

One of the drivers, Monday Okosu, told Daily Trust that he now spends N6,000 to fill his cylinder, up from N4,000 before the hike. Despite the increase, he said CNG is still cheaper than Premium Motor Spirit (PMS).

“I converted my vehicle to CNG because it was cheaper than fuel. I hope it doesn’t end up like petrol that skyrocketed. When I was using PMS, I spent between N20,000 and N22,000 to fill my tank,” he said.

Another driver, Sunday James, who operates along Airport Road, said he paid N380 per kg after the increase.

For James Odion, who plies Agbor Road, CNG is still the best option for commercial vehicles. He said it costs about N5,800 to fill his tank but lamented the scarcity of stations in Benin City.

“We have only about three or four CNG stations in the city. Drivers spend several hours queuing before getting the product. Despite that, it’s still better than fuel because I make more money now,” he said.

Other drivers appealed to the government to expand CNG infrastructure, especially in Benin, to reduce the long waiting time at the few available stations.

Kano drivers say CNG feels like fairy tale

In Kano, where the federal government launched a CNG conversion centre in October 2024, motorists claim adoption remains minimal.

“I have listened to several stories on the radio, but as a driver, I have never seen any CNG-powered vehicle. Many people are in the same situation, which is why the discussion around CNG is mostly based on hearsay, leaving many doubtful about its practicality,” a driver in the state said.

In Kaduna State, the CNG conversion centre at the Nigerian Institute of Transport Technology (NITT) is operational, with both commercial and private vehicles occasionally seen being converted. However, most vehicle owners who have adopted CNG said the challenge is not the cost but the availability of the fuel.

One of them, Malam Aminu Yaya, said: “I converted my car, but the main issue is accessing CNG when needed. That is why many people have abandoned the option and gone back to using petrol.”

In Jigawa State, there is currently no functional federal government-owned CNG conversion centre. However, in December 2024, the state governor approved N117 million for the establishment of a pilot CNG conversion and training facility in Dutse, the state capital.

Across the Northwest, only Kano and Jigawa have CNG conversion centres, while Sokoto, Katsina, Zamfara, and Kebbi States still lack any federal government-established centres.

Lagos drivers downplay impact

In Lagos, many drivers said CNG remains the cheaper option despite the hike.

Joshua John, a commercial driver using a 65kg CNG cylinder, described the recent price adjustment as minimal.

He said his daily refill cost rose from N3,600 to N5,700, but insisted CNG remains cheaper than fuel. He urged the federal government to expand filling stations to reduce long queues.

“It’s better than fuel. If CNG were as widely available as fuel, it would have been perfect. Right now, we queue before buying. If it were as easy as refueling with petrol, it would be better,” he said.

John added that the increase would not affect transport fares, noting that CNG drivers charge the same rates as fuel users.

Olakitan Olumide, who runs his vehicle on both petrol and a 45kg CNG cylinder, said CNG remains more economical. “I used to spend N3,500 on CNG and N5,000 on fuel daily. CNG is a hundred percent better,” he said, also calling for more filling stations.

For Julius Ogwu, who converted his vehicle in February, the benefits remain clear. He explained that 26 SCM of CNG covers about 100 kilometres, which he described as profitable despite the price rise.

“I have been benefiting since it was N230. The increase is negligible. With my V8 engine, fuel costs far more. CNG is very efficient,” he said.

Price disparity

Price disparities have persisted since the introduction of CNG in Nigeria.

On October 24, 2023, Greenville LNG launched the country’s first Liquefied Compressed Natural Gas (L-CNG) station in Kaduna, where liquefied natural gas is converted into CNG for vehicles.

Since its launch, Greenville has consistently sold CNG above the regulatory price of N230 per standard cubic meter (SCM), charging over N400.

Similarly, Shafa Energy, after inaugurating its station in Abuja, sold at N350 per SCM before being shut down over its refusal to comply with the regulated price. The recent hike to N380 per SCM now raises speculation that Shafa may resume operations.

In the same vein, Bovas CNG had completed installation and was ready to begin sales but held back after seeking to sell above the official rate.

Price may hit N520 per SCM to attract investments – Stakeholders

Stakeholders in Nigeria’s compressed natural gas (CNG) sector have warned that retail prices may need to rise to about N520 per standard cubic metre (SCM) to attract substantial private investment.

They said although CNG remains cheaper than petrol and diesel, current regulated rates are not commercially viable enough to expand infrastructure nationwide.

At present, some CNG stations sell between N230 and over N500 per SCM.

It is understood that filling a 65kg CNG cylinder requires about 13 to 15 SCM, enough to power a vehicle for roughly 100 kilometres.

By comparison, petrol or diesel vehicles need about 15 to 18 litres for the same distance.

Industry experts said this cost advantage for drivers is clear, but investment incentives remain weak.

“The current CNG price of N230 is not sustainable. If the price rises above N520 per SCM, it would create commercial viability and attract more foreign and local investments,” said energy consultant Chinedu Basil.

Similarly, Abdullahi Kabiru, a gas development specialist, noted that CNG adoption depends heavily on pricing.

He explained that at the lowest rate of N230 per SCM, drivers enjoy huge savings compared to petrol and diesel.

“Even if the price rises to around N407 per SCM, CNG still delivers about 104% savings compared to petrol,” he said.

According to stakeholders, the path to scaling up CNG lies in balancing affordability for consumers with attractive returns for investors.

They maintained that without a viable pricing framework, the government’s goal of making CNG as accessible as petrol and diesel will face major setbacks.

CNG push after subsidy removal

In August 2023, the Bola Tinubu administration shifted focus to Compressed Natural Gas (CNG) as an alternative to petrol following the removal of fuel subsidies, which pushed pump prices above N650 per litre in some areas.

To cushion the impact, the Nigerian National Petroleum Company Limited (NNPCL) partnered with NIPCO Gas Limited to roll out CNG stations nationwide, providing a cheaper and cleaner fuel option.

The project is structured in two phases: intra-city phase (Q1 2024): 21 CNG stations to support urban transportation, expected to be operational in the first quarter of 2024 and intercity phase: 35 stations to serve long-distance travel, promoting CNG use beyond cities.

Additionally, NNPC Retail plans 56 more stations, while NIPCO Gas already runs 14 CNG stations nationwide. (Daily Trust)

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