Nigerians who converted their cars to Compressed Natural Gas (CNG) to escape record-high petrol prices now face another shock. The cost of one standard cubic metre (SCM) of CNG has nearly doubled to ₦450 from ₦230, after the federal government trimmed its subsidy.
Retailers said that truck drivers must now pay ₦450 per SCM, while commercial drivers and private car owners still enjoy partial relief at ₦380 per SCM. Officials say the split pricing is meant to keep transport fares stable, but industry insiders warn it risks discouraging adoption.
Nigeria has spent the past year promoting CNG as a cheaper and cleaner alternative after scrapping its decades-old petrol subsidy in May 2023, which sent pump prices soaring from ₦175 per litre to ₦870. The government promised CNG would cut transport costs and reduce reliance on expensive imports.
Yet long queues, sometimes stretching 1.5 kilometres, and a shortage of stations have left drivers frustrated.
The adoption had surged in the past year, with over 100,000 petrol-powered vehicles converted, up from fewer than 4,000 a year earlier, according to PCNGI data. Nigeria now has 265 conversion centres and 60 operational refuelling stations, with 175 more planned.
But retailers say prices may climb even higher, possibly to ₦500 or ₦600 per SCM, as the Nigerian National Petroleum Company (NNPC) Gas Marketing Limited aligns costs to attract investors.
The subsidy dilemma highlights Nigeria’s tightrope walk between encouraging cleaner energy and managing consumer pain. For many drivers, the dream of cheaper fuel may be slipping away.
Read also: Nigeria’s NNPC Delivers 35 CNG Buses to Support Presidential Gas Initiative
