The federal government Thursday stated that it has not directed downstream operators in the Compressed Natural Gas (CNG) space to raise the price of the product, stressing that whatever adjustments have been seen in recent days were purely private sector decisions.
The Presidential Initiative on Compressed Natural Gas (PICNG) in a statement in Abuja signed by its Brand and Corporate Communications Manager, Matilda Johnson, noted that its responsibility is to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative.
CNG, which the federal government introduced as a cheaper and cleaner alternative to petrol after the removal of fuel subsidies, has recently witnessed a steep rise in price across Nigeria.
The commodity, which only a few months ago sold for about N230 per Standard Cubic Metre (SCM) now goes for between N380 and N450, depending on the type of vehicle and location, THISDAY learnt.
Operators point to rising operational costs and the need to attract further private investment into infrastructure as reasons for the increase. By their assessment, keeping the old price would have discouraged new entrants into the market and limited expansion of conversion centres and refuelling stations.
“PCNGI 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 PICNG, 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 added.
According to the coordinating office for the programme, despite teething challenges, nearly $1 billion has been attracted into the business already through Public-Private Partnership (PPP).
“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 PICNG emphasised that while Nigerians may have noticed an increase in recent days, it is not based on any decision by the federal government or the coordinating office.
“It must also be emphasised that the recent pump price adjustments announced by certain operators are purely private-sector decisions and not the outcome of any government directive or policy,” it stressed.
Besides, the PICNG noted that despite the adjustment, CNG fuel remains cheaper and cleaner compared to petrol.
“The federal government assures Nigerians that CNG will always remain significantly cheaper, cleaner, and more affordable than PMS and diesel. Our focus remains on deepening CNG penetration nationwide and encouraging broader private sector participation to ensure availability and affordability for all,” the office stated.
Emmanuel Addeh
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