Filling Stations Announce New CNG Pump Prices Closer to Petrol Cost

• The price of CNG, which is seen as an alternative to petrol, has increased and is now getting closer to petrol prices
• The new price, which is as high as N500 per SCM, is far above the regulated price of N230 announced by the federal government
• The federal government plans to establish 92 CNG stations under the NNPCL–NIPCO partnership, but the rollout remains slow

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Filling stations across Nigeria have raised the pump price of Compressed Natural Gas (CNG) by more than 65%.

The new prices have come as a surprise to many motorists, given the government’s efforts to encourage a switch from petrol and its promise of lower costs.

Independent outlets, including NIPCO Gas and Mobil, have adjusted their pump price from N230 to N380 per standard cubic metre (SCM) on Monday, September 1.

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However, at the Nigerian National Petroleum Company Limited (NNPCL) station remained unchanged at N230 as of Tuesday, September 2.

There are expectations that the Federal Government plans to fix the retail price of CNG at N380 SCM in Lagos and Abuja.

Why CNG prices increase?

DailyTrust reports that the reason for the sudden hike remains unclear, though sources said NIPCO’s supply contract had expired, with NNPC now taking over distribution.

Nigeria turned to CNG after the Tinubu administration ended the subsidy in May 2023, which drove pump prices above N650 per litre.

After this, the government launched a partnership between NNPCL and NIPCO Gas to build 92 stations nationwide in two phases, with plans to make CNG as accessible as petrol.

Motorists react to new prices

The new prices mean that the difference between CNG and petrol is now only about N300, with petrol selling for between N855 and N865 per litre in Lagos, and around N890 to N910 per litre in Abuja.

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Drivers have warned that the hike in CNG could erode the cost advantage it has over petrol.

Hakeem Idris, a ride-hailing driver, said:

“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 said CNG saved him N43,000 weekly, warned that rising costs could discourage adoption.

He said:

“If prices keep going up, the difference with petrol will disappear,”

In Benin City, Edo State, the price jumped from N200 to N380, with drivers reporting higher refuelling costs but still some savings compared to 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."

Price snapshot

• Some stations sell between N230 and over N500 per SCM
• Shafa Energy previously sold at N350 per SCM in Abuja
• Greenville LNG consistently above N400 per SCM

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Depots' petrol prices in Nigeria

Earlier, Legit.ng reported that Private depot owners have decided to slash their Premium Motor Spirit, also known as petrol price, as they compete with Dangote Petroleum Refinery for customers.

New data shows that their ex-depot price for petrol at major depots now ranges between N820 and N870 per litre.

Market analysts expect the ex-depot price changes to impact petrol pump prices at filling stations nationwide.

Source: Legit.ng