The Federal Government has approved a new price of N450 per standard cubic metre (SCM) for Compressed Natural Gas (CNG), following the withdrawal of subsidies on the product.
The revised tariff has significantly increased the cost of fueling heavy-duty vehicles, particularly trucks and trailers that rely on Compressed Natural Gas (CNG) for long-haul transportation.
However, under the new pricing structure, private motorists and commercial buses will continue to receive partial subsidies, paying ₦380 per SCM instead of the full rate.
The changes were confirmed on Tuesday in Abuja by officials of the Presidential Compressed Natural Gas Initiative (PCNGI), who said the move was necessary to reduce subsidy expenses and encourage private investment in the sector.
The policy shift has already triggered long queues at CNG stations across major cities, with motorists expressing concerns over the rising costs.
Drivers who converted their vehicles at lower rates say the hike is eroding the savings that initially attracted them to CNG as an alternative to petrol.
The CNG programme was launched in 2023 after the removal of petrol subsidies pushed pump prices from about ₦175 to over ₦800 per litre.
Marketed as a cleaner and cheaper option, the initiative has seen more than 100,000 vehicle conversions and the rollout of new refilling stations nationwide.
Despite these efforts, industry experts warn that the ₦450 price point may not be sustainable.
They project that CNG could rise to as high as ₦520 per SCM if the government intends to draw meaningful private capital for infrastructure expansion.
