By Sesi Noah The Presidential Compressed Natural Gas Initiative (PCNGI) has responded to concerns about recent increases in the price of Co...
By Sesi Noah
The Presidential Compressed Natural Gas Initiative (PCNGI) has responded to concerns about recent increases in the price of Compressed Natural Gas (CNG), saying the Federal Government isn't to blame — and, in fact, doesn't subsidize CNG at all.
In a statement released on Wednesday, PCNGI made it clear that the government doesn’t control CNG prices. Instead, pricing is left to private companies in the market, like NIPCO Gas, which recently raised its pump prices. The group explained that NIPCO and other operators have the right to set prices based on their own business situations.
“The recent price adjustment was done by NIPCO, a private company. Like other businesses in the sector, they decide their prices based on what works for them,” the statement read.
PCNGI also pointed out that it doesn’t regulate prices either — that’s the job of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Since April 2024, the NMDPRA has had a system in place to keep CNG prices lower than petrol and diesel, while also keeping an eye out for companies trying to take advantage of customers.
The Initiative said it’s been working with key industry players — including the Gas Aggregation Company of Nigeria (GACN) and the NMDPRA — since the launch of the domestic gas market in June 2025, to make sure supply remains stable and prices don’t spiral out of control.
“The days of secret fuel subsidies that drained the economy are over,” the statement continued. “We’re building a transparent CNG market that welcomes investment and uses healthy competition to eventually lower prices.”
According to PCNGI, over $1 billion has already been invested in Nigeria’s CNG sector over the past 18 months under President Tinubu’s administration.
While they acknowledged that there have been a few bumps in the road with supply, they said it’s nothing unusual for a growing market — and that as long as companies stick to the rules, slight price changes are allowed.
The Initiative wrapped up by saying it remains committed to working with industry players to expand access to CNG, increase adoption across the country, and keep investor confidence high.
Photo credit: Vanguard News
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