FG Rules Out CNG Subsidy, Says Market Forces Will Drive Prices

The Federal Government has clarified that Compressed Natural Gas (CNG) is not subsidized, insisting that recent pump price hikes were decisions made by private operators.

The Presidential CNG Initiative (PCNGI) said on Wednesday that pricing lies with investors such as NIPCO Gas, not government, though regulators will guard against exploitation.

PCNGI stressed that unlike petrol and diesel, the CNG market is designed to be transparent and investment-driven, attracting over $1 billion in private capital within 18 months.

“The era of opaque subsidies is gone. Healthy competition will bring costs down over time,” the Initiative said, while assuring that CNG will remain cheaper than petrol and diesel under the incentive-based framework of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.