FG Clarifies No Subsidy on CNG Amid Price Hike

The Presidential Compressed Natural Gas Initiative (PCNGI) has clarified that the Federal Government does not subsidise Compressed Natural Gas (CNG), despite recent pump price hikes by some operators.

In a statement on Wednesday, the Initiative explained that pricing is determined by private sector investors, while regulatory agencies will continue to protect consumers from exploitation.

“The recent adjustment in CNG pump price was carried out by NIPCO Gas, a private sector operator in the Auto-CNG market. NIPCO, like other players, retains the discretion to set prices in line with business realities,” it said.

PCNGI noted that it neither sets nor regulates prices, stressing that such responsibility rests with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Since April 2024, the regulator has maintained an incentive-based pricing framework that ensures CNG remains cheaper than petrol and diesel, while enabling sanctions against price gouging.

The Initiative added that since the launch of the domestic gas market in June 2025, it has worked with the Gas Aggregation Company of Nigeria (GACN) and NMDPRA to guarantee supply and long-term stability.

Rejecting the return of opaque subsidies, PCNGI said the CNG sector is being built as a transparent, competitive market that will attract investment and drive down costs. It disclosed that over $1 billion has been invested in the sector in the past 18 months under President Bola Tinubu’s administration.

While acknowledging temporary supply challenges, it described them as typical of new markets. It assured that operators may adjust prices provided they remain within regulatory thresholds.

The Initiative reaffirmed its commitment to expanding supply, driving adoption, and safeguarding investor confidence in Nigeria’s CNG industry.