The price of Compressed Natural Gas (CNG) has increased in Nigeria, affecting various sectors.
The price of CNG has been adjusted to N380 per standard cubic meter for commercial vehicles and N450 per standard cubic meter for heavy-duty trucks, representing a 65.22% and 40.63% increase, respectively.
According to Taofeek Lawal, spokesperson for NIPCO, a Nigerian petroleum products marketer, the price increase is necessary for investors in CNG stations to meet their operational costs, as the former pricing was not commercially viable. “The price increase applies to all CNG stations in Nigeria.
If you visit AYM Shafa, Greenville, or NNPCL stations, the adjustment applies to all CNG stations. It is just to be able to meet the operational cost of running and maintaining CNG stations. Also, the move was to stimulate investment in CNG stations.
The former rate of N230 and N320 is not economically viable. We now sell CNG at N380 per Standard Cubic Meter. NNPCL sells for N380, Greenville sells for N380 in Kaduna. For truck drivers, it is N450, and for commercial vehicles, it is N380 per SCM”, he said
This price adjustment applies to all CNG stations in Nigeria, including those operated by the Nigerian National Petroleum Company Limited (NNPCL), Greenfield, AYM Shafa, and NIPCO.
The Nigerian government introduced CNG as an alternative fuel source to cushion the impact of fuel subsidy removal in 2023, with plans to promote its adoption nationwide.
CNG offers several benefits which includes reducing fuel costs, with potential savings of up to 90% compared to petrol, It is a cleaner-burning fuel, producing fewer greenhouse gas emissions and air pollutants.
CNG can also help reduce dependence on imported fuels, improving energy security and reducing foreign exchange expenditures.
