The Federal Government has raised the retail price of compressed natural gas (CNG) from N230 to N380 per standard cubic metre (SCM).
According to Nairametrics, the revised pricing took effect on September 1, 2025, in Lagos and Abuja, but had already been rolled out in other parts of the country two months earlier.
Independent marketers, including NIPCO Gas and Mobil, adjusted their pump price from N230 to N380 per SCM on Monday, September 1, 2025.
However, in some locations, prices climbed as high as N500/SCM due to factors like distance from pipelines, truck-based distribution, and regasification costs.
Government sources confirmed the adjustment, stating it aims to harmonize CNG pricing 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,” a source said.
At the same time, the price at Nigerian National Petroleum Company Limited (NNPCL) stations remained unchanged at N230 as of Tuesday, September 2, 2025.
CNG Push After Subsidy Removal
Nigeria’s CNG adoption began in 2023 following the fuel subsidy removal by the Tinubu administration. With petrol and diesel prices soaring, the government introduced the Presidential Compressed Natural Gas Initiative (PCNGi) to provide a cheaper, cleaner alternative.
Under the plan, commercial drivers received free vehicle conversions at approved centres, while states like Lagos, Ogun, Oyo, and Rivers launched 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 extensive technician training.
However, adoption lagged projections, with only 50,000 vehicles converted to CNG as of January 2025, far below the one million target by 2027.
Motorists React to New Prices
The hike now leaves a N300 difference between CNG and petrol, with petrol priced at N855–N865 per litre in Lagos and N890–N910 per litre in Abuja.
Drivers warn that the rising cost could erode CNG’s advantage over petrol.
Hakeem Idris, a ride-hailing driver, told Daily Trust:
“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 driver, Basil Duniya, who previously saved N43,000 weekly using CNG, said:
“If prices keep going up, the difference with petrol will disappear.”
In Benin City, Edo State, the price jumped from N200 to N380, forcing drivers to bear higher refuelling costs despite still enjoying some savings over petrol.
“I now spend N6,000 to fill my cylinder, up from N4,000 before the hike. It’s still cheaper than PMS, but I hope it doesn’t skyrocket like petrol,” one driver lamented.
