JUST IN: FG Increases CNG Price by 65% to N380, Threatening Fuel Alternative for Motorists

JUST IN: FG Increases CNG Price by 65% to N380, Threatening Fuel Alternative for Motorists

ABUJA, FCT – September 2, 2025 – The Federal Government has implemented a sharp increase in the retail price of Compressed Natural Gas (CNG), raising it by approximately 65% from N230 to N380 per Standard Cubic Metre (SCM) in Lagos and Abuja.

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The new price, which took effect on September 1, 2025, has sparked immediate concern among motorists and commercial drivers who had converted their vehicles to CNG to escape the soaring cost of petrol following the removal of fuel subsidies.

This move threatens to erode the primary advantage of CNG—its affordability—and could potentially slow down the adoption of the government’s flagship fuel alternative program.

A Nationwide Price “Harmonization”

According to government sources, the price adjustment in Lagos and Abuja is part of a broader effort to harmonize CNG costs across the country. While the N380/SCM price is new to these cities, it was reportedly implemented in other states two months ago.

Independent fuel marketers, including NIPCO Gas and Mobil, adjusted their pumps to the new N380/SCM price on Monday, September 1.

In some remote locations, prices were already as high as N500/SCM due to distribution and logistics costs.

In a surprising twist, as of Tuesday, September 2, Nigerian National Petroleum Company Limited (NNPCL) stations were still selling CNG at the old price of N230/SCM.

Drivers React: “The Whole Idea of CNG is at Risk”

The price hike has been met with frustration from drivers who invested in converting their vehicles and often endure long queues to refuel.

Hakeem Idris, a ride-hailing driver in Lagos, told Daily Trust that the savings are becoming questionable. “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,” he said.

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Another driver, Basil Duniya, who had been saving N43,000 weekly by using CNG, warned that the incentive to switch is disappearing. “If prices keep going up, the difference with petrol will disappear,” he warned.

In Benin City, Edo State, where the price jumped from N200 to N380, a driver noted, “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.”

A Setback for the Presidential CNG Initiative?

The Federal Government launched the Presidential Compressed Natural Gas Initiative (PCNGi) in 2023 as a critical palliative after the removal of fuel subsidies. The program was designed to offer a cheaper and cleaner alternative fuel, with the government offering free vehicle conversions for commercial transporters.

However, adoption has been slower than anticipated. As of January 2025, only about 50,000 vehicles had been converted, a fraction of the government’s target of one million vehicles by 2027. This new price hike is widely seen as a potential setback that could further discourage motorists from making the switch.

With petrol prices currently between N855 and N910 per litre in Lagos and Abuja, the new N380/SCM price for CNG significantly narrows the savings margin. The government’s goal of pushing CNG as a mainstream fuel now faces a major test of consumer confidence and economic viability.