ABUJA — The Presidential Compressed Natural Gas Initiative (PCNGI) has clarified that the Federal Government does not subsidize Compressed Natural Gas (CNG), insisting that recent pump price hikes are entirely the decisions of private operators.
In a statement on Tuesday, the initiative explained that CNG pricing is market-driven and determined solely by private sector players, while stressing that regulatory agencies remain on guard to prevent exploitation of consumers.
“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, like other operators, retains the discretion to set prices in line with its business and commercial realities,” PCNGI stated.
It noted that PCNGI does not set or regulate CNG prices, as this responsibility rests with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to the statement, since April 2024, NMDPRA has operated an incentive-based pricing framework for Auto-CNG that ensures it remains cheaper than Premium Motor Spirit (PMS) and diesel. The framework also empowers the authority to sanction price gouging.
“Since the launch of the domestic gas market in June 2025, PCNGI has been working closely with the Gas Aggregation Company of Nigeria (GACN) and the NMDPRA to ensure steady supply and long-term price stability,” the statement read.
Rejecting any possibility of hidden subsidies in the sector, PCNGI emphasized that the CNG market is being developed as a transparent, investment-driven space where competition will ultimately drive costs down.
“The era of opaque subsidies that crippled the PMS/AGO sector will not be replicated in the CNG market,” it assured.
The initiative further disclosed that over $1 billion in investments have flowed into the CNG sector in the past 18 months under President Bola Tinubu’s administration, adding that sustaining investor confidence requires consistency and a market-driven approach.
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