FG fixes CNG retail price at N380 per cubic metre in Lagos, Abuja

The federal government has fixed the retail price of compressed natural gas (CNG) at N380 per standard cubic metre (SCM) in Lagos and Abuja, bringing the two cities in line with the uniform rate already applied nationwide.

The new CNG pricing was implemented in Lagos and Abuja on September 1, following its rollout in other regions of the country two months earlier. The adjustment is part of an effort to standardize CNG costs nationwide.

“From 1st September, CNG price for all category of passenger vehicles will be N380 per SCM in Abuja and Lagos. For all other locations, it was already made N380, 2 months back,” it stated.

In some areas, prices had been as high as N500/SCM due to factors such as distance from pipelines, reliance on truck-based distribution, and regasification expenses.

Following the removal of fuel subsidies by the Tinubu administration in 2023, the cost of petrol and diesel surged, prompting the federal government to launch the Presidential Compressed Natural Gas Initiative (PCNGi).

The program aimed to provide a more affordable and environmentally friendly alternative for motorists. As part of this initiative, commercial drivers were offered free vehicle conversions at approved centers, and several states, including Lagos, Ogun, Oyo, and Rivers, introduced CNG-powered buses and fueling stations.

By mid-2025, over 65 daughter stations were operational across 21 states, supported by more than $450 million in investments and the training of thousands of technicians.

However, the adoption of CNG has been slower than anticipated, with only about 50,000 vehicles converted by January 2025, falling short of the government’s 2027 target of one million.

Experts suggest that to accelerate the adoption of CNG, Nigeria must expand its network of pipeline-fed stations, decrease its reliance on truck-based distribution, and establish a pricing framework that is both affordable for consumers and profitable for investors.

They recommend that the price per standard cubic meter (SCM) should average between N407 and N520. This pricing, they explain, would account for the costs of infrastructure, distribution, and maintenance, ensuring that investors can sustain their operations and invest in new stations.

They caution that without this balance, the adoption of CNG is likely to remain slow despite its cost benefits compared to petrol and diesel.