PCNGI clarifies media reports on CNG pricing

The Presidential Compressed Natural Gas Initiative (PCNGI) has clarified recent media reports regarding the price of Compressed Natural Gas (CNG) in Nigeria.

According to PCNGI, “the recent adjustment in CNG pump price was carried out by NIPCO Gas, a private sector operator in the Auto-CNG market.”

NIPCO is one of several investors in the sector, and it retains the discretion to set prices in line with its business and commercial realities.

The PCNGI emphasised that it does not set or regulate CNG prices, stating, “regulation of gas pricing is the responsibility of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).”

ALSO READ: NESG, UKNIAF move to tackle Nigeria’s $2.3trn infrastructure deficit

Since April 2024, the NMDPRA has maintained an incentive-based pricing framework for Auto-CNG that ensures CNG will always be priced at a discount to PMS and diesel.

The PCNGI also highlighted that the era of opaque subsidies that crippled the PMS/AGO sector will not be replicated in the CNG market.

Instead, the CNG sector is being developed as a transparent, investment-driven market where healthy competition will drive costs down over time.

Over $1 billion in investments have been attracted into the CNG sector in the last 18 months under the administration of President Bola Ahmed Tinubu.

The PCNGI noted that while temporary supply challenges exist, the CNG market remains a nascent and growing industry, noting that price adjustments by private operators are normal in such markets, provided they remain within regulatory bounds.

The PCNGI said it would continue to work with industry players to expand supply, encourage adoption, and safeguard investor confidence.

“We thank Nigerians for their continued support of the President’s clean, cheaper, and safer energy initiatives, and we urge the media to report responsibly as our nation transitions to a sustainable energy future,” the PCNGI stated.