The Presidential Compressed Natural Gas Initiative (PCNGI) has said that the Federal Government does not subsidize Compressed Natural Gas (CNG). There had been insinuation that the recent hike in CNG pump price was caused by FG’s withdrawal of subsidy on CNG.
But in a statement yesterday, PCNGI stated that pricing decisions are determined by private sector players. It also promised that government agencies will continue to protect consumers against exploitation.
The Initiative explained that it neither sets nor regulates CNG prices, adding that such responsibility lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). It said: “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 that since April 2024, the NMDPRA had maintained an incentive-based pricing framework for Auto-CNG that ensures it is always priced lower than petrol and diesel, while empowering the regulator to act against price gouging.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
