FG denies ordering hike in CNG pump prices

The Federal Government has clarified that it did not direct operators in the Compressed Natural Gas (CNG) sector to increase pump prices, saying recent adjustments were decisions made by private players.

The Presidential Initiative on Compressed Natural Gas (Pi-CNG) made this known in a statement signed in Abuja on Thursday by Matilda Johnson, its Brand and Corporate Communications Manager.

“Pi-CNG wishes to address recent misleading and outright false reports suggesting that the federal government has removed subsidy or increased the price of Compressed Natural Gas (CNG). This is incorrect.

“For absolute clarity, while pricing matters fall under the purview of the appropriate regulatory agencies, no directive or policy has been issued by the federal government to alter CNG pump prices.

“The mandate of Pi-CNG, as directed by President Bola Ahmed Tinubu, is to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative to Premium Motor Spirit (PMS) and diesel across the country,” the statement read.

According to PICNG, the sector has continued to witness growth despite challenges, attracting nearly $1 billion through Public-Private Partnerships.

“So far, through the collaboration and commitment of relevant government agencies, the sector has witnessed monumental enthusiasm and growth.

“Encouragingly, this progress has already attracted close to $1 billion in private sector investment, underscoring confidence in the market’s potential,” the statement added.

The initiative clarified that the federal government had no hand in the recent price hike.

It stressed that the adjustments announced by some operators were solely private-sector decisions and not the result of any official directive or policy.

It further reassured Nigerians that CNG would remain the more affordable and environmentally friendly alternative.

According to Pi-CNG, “the federal government assures Nigerians that CNG will always remain significantly cheaper, cleaner, and more affordable than PMS and diesel.”

It added that efforts are ongoing to expand adoption nationwide by encouraging greater participation from the private sector.

Daily Times earlier reported that Industry experts have warned that CNG may need to sell for about N520 per Standard Cubic Metre (SCM) to make investments in gas stations and related infrastructure commercially viable.

Analysts noted that while CNG remains cheaper than petrol and diesel, current prices are insufficient to attract the large-scale private investment needed to expand refuelling networks and guarantee reliability nationwide.