No FG Subsidy Removal on CNG, Says Presidential Initiative

The Presidential Compressed Natural Gas Initiative (PCNGI) has firmly denied that the Federal Government has removed subsidies or increased the official price of Compressed Natural Gas (CNG).

This statement comes after recent media reports suggested the government had ended its support, leading to higher costs for consumers. The PCNGI has labelled these reports “inaccurate and misleading.”

For clarity, the initiative explained that a recent price change was enacted by a private company, not the government. “The recent adjustment in CNG pump price was carried out by NIPCO Gas, a private sector operator,” the PCNGI stated. It emphasised that “NIPCO is one of several investors” and, like others, “retains the discretion to set prices in line with its business and commercial realities.”

The body was clear about its role, noting, “The PCNGI does not set or regulate CNG prices.” It confirmed that this job belongs to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The group assured that the regulatory authority’s pricing framework, which has been in place since April 2024, “remains unchanged.”

This framework is designed to keep CNG affordable. “It ensures CNG will ALWAYS be priced at a discount to PMS and Diesel,” the initiative said. It also gives the NMDPRA the power “to enforce against price gouging.”

The PCNGI outlined its vision for a different kind of energy market. It stated that “the era of opaque subsidies that crippled the PMS/AGO sector will not be replicated.” Instead, the CNG sector is being developed as a “transparent, investment-driven market where healthy competition will drive costs down over time.”

The statement highlighted the success of this approach, revealing that “over $1 billion in investments have been attracted into the CNG sector in the last 18 months.” It argued that “protecting these investments requires consistency, transparency, and a market-driven approach.”

While acknowledging “temporary supply challenges,” the PCNGI urged for perspective, noting the CNG market is a “nascent and growing industry” where private price adjustments are normal within regulatory bounds.

The initiative concluded by thanking Nigerians for their support of the President’s “clean, cheaper, and safer energy initiatives” and urged the media “to report responsibly as our nation transitions to a sustainable energy future.”