In response to recent increases in pump prices by certain operators, the Presidential Compressed Natural Gas Initiative (PCNGI) has made it clear that the Federal Government does not subsidize compressed natural gas (CNG).
While ensuring that government organizations would continue to safeguard consumers from abuse, PCNGI clarified in a statement on Wednesday that pricing choices are made by private sector participants.
“NIPCO Gas, a private sector player in the auto-cNG market, implemented the most recent change in the price of CNG pumps. NIPCO is one of several investors in the sector and, like other operators, retains the option to establish prices in line with its business and commercial realities,” the statement said.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is in charge of setting and regulating CNG rates, the Initiative emphasized.
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It pointed out that since April 2024, the NMDPRA has maintained an incentive-based pricing framework for Auto-CNG that ensures it is always priced lower than petrol and diesel, while empowering the regulator to act against price gouging.
PCNGI 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 steady supply and long-term price stability.
“The CNG market will not experience the same period of hidden subsidies that plagued the PMS/AGO sector. Rather, it said, the CNG industry is being shaped as an open, investment-driven market where healthy competition will eventually result in lower prices.
The Initiative reported that over $1 billion has been brought into the CNG industry in the last 18 months under the government of President Bola Ahmed Tinubu.
It acknowledged transitory supply issues but classified them as usual in emerging markets, noting that pricing modifications by operators are acceptable as long as they remain below regulatory limitations.
In order to increase supply, promote adoption, and preserve investor trust in Nigeria’s CNG sector, PCNGI reaffirmed its dedication to collaborating with industry participants.
