By Oso Abidemi
The Presidential Compressed Natural Gas Initiative (PCNGI), has dismissed reports that the Federal Government increased the pump price of Compressed Natural Gas (CNG), or scrapped subsidies on the product, insisting that the recent hike was solely the decision of a private operator, NIPCO Gas.
In a statement issued yesterday, PCNGI said NIPCO, one of several investors in the Auto-CNG market, adjusted its pump prices in line with business realities, but stressed that the Federal Government neither fixes nor regulates CNG prices.
It explained that pricing oversight rests with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which has maintained an incentive-based framework since April 2024 to ensure CNG remains consistently cheaper than petrol and diesel.
“The recent adjustment in CNG pump price was carried out by NIPCO Gas, a private sector operator in the Auto-CNG market. The PCNGI does not set or regulate CNG prices,” the initiative said, adding that the framework empowers NMDPRA to act against price gouging.
The initiative stressed that the era of opaque subsidies in the petrol and diesel sectors would not be replicated in the CNG market, which it described as transparent and investment-driven.
It disclosed that more than $1 billion had been attracted into the sector in the last 18 months under President Bola Tinubu’s administration.
PCNGI further explained that temporary supply challenges exist in the nascent market but assured Nigerians that the government is working with the Gas Aggregation Company of Nigeria (GACN), and NMDPRA to stabilise prices and boost supply.
“Price adjustments by private operators are normal in growing markets, provided they remain within regulatory bounds,” it stated, while urging the media to report responsibly as Nigeria transitions to cleaner and cheaper energy.
