CNG Car
By Olamilekan Abayomi
The Compressed Natural Gas (CNG) retail price has increased by N150 per standard cubic meter (SCM) in Lagos and Abuja, bringing the new price to N380 per SCM for cars and buses. For lorries and heavy-duty vehicles, the price is N450 per SCM. This change aims to harmonize CNG costs nationwide, with the price already being N380 per SCM in other parts of the country since July.
The new price marks a significant adjustment from the previous rate of N230 per SCM in Lagos and Abuja. The price harmonization is expected to stabilize costs across the country, ensuring a uniform rate for CNG users. This move is part of the Presidential Compressed Natural Gas Initiative (PCNGi), which aims to promote cleaner energy alternatives and reduce the country’s reliance on traditional fuels.
The price increase may have implications for motorists, particularly ride-hailing drivers who have invested heavily in converting their vehicles to CNG. Some drivers have spent up to N1.5 million on conversions, and the price hike may discourage adoption. Moreover, the difference between CNG and petrol prices is now only about N300, with petrol selling for N855-N865 per liter in Lagos and N890-N910 per liter in Abuja.
Experts have suggested a sustainable pricing range of N407 to N520 per SCM to ensure operational viability and attract investors. The government aims to expand CNG infrastructure, with plans to commission additional refueling stations and increase accessibility nationwide. As the CNG market continues to evolve, stakeholders will be monitoring the impact of the price increase on adoption rates and the overall growth of the industry.
The government’s initiative to promote CNG is expected to contribute to a cleaner environment and reduce the country’s carbon footprint. However, the success of this initiative will depend on maintaining a balance between pricing and infrastructure development to encourage widespread adoption of CNG technology.
