The price of Compressed Natural Gas (CNG), widely promoted by the Federal Government as a cheaper alternative to petrol and diesel, has surged to N450 per standard cubic metre (SCM) following the withdrawal of subsidies.
This sharp increase, confirmed by retailers and industry insiders, has sparked concerns among motorists and stakeholders who fear that rising costs and persistent scarcity could derail Nigeria’s CNG adoption drive.
Until recently, CNG sold for about N230/SCM, but retail outlets have now adjusted pump prices, citing a directive from the Nigerian National Petroleum Company Gas Marketing Limited (NGML).
Under the new pricing structure, truck drivers pay N450/SCM, while commercial and private car owners pay a subsidised rate of N380/SCM, a system designed to cushion the effect of rising transport costs on commuters.
Officials of the Presidential Compressed Natural Gas Initiative (PCNGI) confirmed the new price regime but insisted that the government remains committed to supporting commercial transporters.
According to one official, who spoke on condition of anonymity, the two-tier pricing was introduced to prevent a spike in transportation fares.
“The refuelling stations now sell at different prices for cars and trucks.
Trucks transporting goods pay more, while buses and private cars pay a lower rate.
There is still some level of subsidy, especially for commercial vehicles,” the source explained.
The official added that the government’s major priority is to expand access to CNG across the country.
“Our main focus is to build more refuelling stations.
Some motorists have converted their vehicles, but limited availability of gas means they still rely on petrol.
We want to ensure that no converted vehicle owner complains of a lack of access to CNG.”
Retailers and operators warn that the price of CNG may rise further, possibly to N500 or N600/SCM, as the government gradually phases out subsidies to attract private investment.
A major CNG marketer told our correspondent that while subsidy had kept prices artificially low since 2023, the reality of global energy costs and infrastructure investment meant higher prices were inevitable.
“The truth is that the government had capped CNG prices below cost to attract users after petrol subsidies were removed.
But now, marketers are adjusting. Truck drivers are paying N450, while car drivers pay N380. Going forward, we may see N500 or even N600.
The government is trying to balance affordability with investor confidence,” the retailer said.
For many motorists, the development is discouraging.
Some fear that the high conversion costs, coupled with rising CNG prices, may push users back to petrol, despite the government’s campaign.
“I spent nearly N1.5 million converting my car to CNG.
At the beginning, it was cheaper, but with prices climbing and queues stretching over a kilometre in some stations, it feels like the government’s promise is collapsing,” lamented Adeyemi Paul, a ride-hailing driver in Lagos.
The latest development follows the Federal Government’s decision in 2023 to remove petrol subsidies, which caused petrol prices to jump from N175 per litre to N870 almost overnight.
To cushion the effect, President Bola Tinubu’s administration aggressively promoted CNG adoption, offering conversion incentives, subsidised kits, and marketing CNG as the sustainable alternative fuel for Nigeria’s transport sector.
In June 2025, PCNGI reported significant progress:
100,000 vehicles had been converted to run on CNG in one year, up from fewer than 4,000 before the subsidy removal.
Operational CNG stations increased from 20 in 2023 to 60 by mid-2025, with 175 more under development.
Conversion centres grew from 7 to 265 nationwide, creating over 10,000 direct jobs.
PCNGI Programme Director, Michael Oluwagbemi, defended the pace of progress, arguing that Nigeria is moving in the right direction despite challenges.
“Rome wasn’t built in a day. Those who led Nigeria into the subsidy crisis cannot fairly criticise the speed at which we’re addressing it,” he said in June.
Analysts, however, warn that the sharp increase in CNG prices could undermine confidence in the government’s transition plan.
They argue that for CNG adoption to succeed, the government must balance the withdrawal of subsidies with strategic investment in infrastructure, pricing stability, and investor incentives.
“There is still a significant gap between government promises and public experience.
If motorists perceive CNG as unreliable or barely cheaper than petrol, they will abandon it. Nigeria cannot afford that setback,” said an industry energy consultant based in Abuja.
As the CNG programme enters a critical phase, the Federal Government faces the dual challenge of sustaining affordability while building investor confidence.
With over 100,000 Nigerians already committed to the transition and billions spent on vehicle conversions, the success or failure of the initiative could define the long-term viability of Nigeria’s clean energy agenda.
For now, motorists continue to grapple with rising costs, long queues, and uncertainty about whether CNG will remain the cheaper alternative it was meant to be.