The Federal Government has increased the retail price of compressed natural gas (CNG) from N230 to N380 per standard cubic metre (SCM).
According to Nairametrics, the new pricing in Lagos and Abuja took effect on September 1, 2025, but had already been implemented in other parts of the country two months earlier.
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, 2025.
In some locations, however, prices had reached as high as N500/SCM due to factors such as distance from pipelines, reliance on truck-based distribution, and regasification costs.
Government sources confirmed the development, noting it was part of efforts to harmonize CNG costs across different regions.
“From 1st September, CNG price for all category of passenger vehicles will be N380 per SCM in Abuja and Lagos. For all other locations, it was already made N380, 2 months back,” the source stated.
However, at the Nigerian National Petroleum Company Limited (NNPCL) station remained unchanged at N230 as of Tuesday, September 2, 2025.
CNG push after subsidy removal
Nigeria’s CNG journey began in 2023, following the removal of fuel subsidies by the Tinubu administration. The sharp rise in petrol and diesel costs pushed the Federal Government to launch the Presidential Compressed Natural Gas Initiative (PCNGi) as a cheaper and cleaner alternative for motorists.
Under the programme, commercial drivers were offered free vehicle conversions at approved centres, while states such as Lagos, Ogun, Oyo, and Rivers rolled out CNG-powered buses and fueling stations.
By mid-2025, more than 65 daughter stations were operational across 21 states, backed by over $450 million in investments and the training of thousands of technicians. However, adoption lagged expectations: only about 50,000 vehicles had switched to CNG as of January 2025, far below the government’s target of one million by 2027.
Motorists react to new prices
Meanwhile, 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.
Drivers have warned that the hike in CNG could erode the cost advantage it has over petrol.
Hakeem Idris, a ride-hailing driver, speaking to Daily Trust 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.”
