In a significant development that has further strained Nigeria’s economic landscape, the price of Compressed Natural Gas (CNG) has soared to ₦455 per liter, up from its previous rate of ₦200 per liter.
This sharp rise comes amidst the Federal Government’s push for Nigerians to convert their vehicles to CNG as an alternative to petrol, which has also seen skyrocketing costs since the full removal of fuel subsidies earlier this year.
The price increase has sparked concerns among Nigerians, who are grappling with an already high cost of living.
Where to Convert Your Car to CNG in Nigeria: Full List of Nine Locations
Many are questioning the viability of CNG as a sustainable solution to the nation’s fuel crisis, as the recent surge challenges the government’s goal of reducing fuel costs by promoting alternatives to petrol.
What Economist and Analysts are Saying?
Economists and energy analysts have raised alarms, arguing that the price hike contradicts the government’s promise of affordability in switching to CNG. The intent was to create a cheaper fuel option for Nigerians, yet we are seeing prices soar,” commented energy analyst Ibrahim Adeyemi. “This trend could make it difficult for Nigerians to bear the cost of fuel conversions and negate the intended financial relief.”
The Federal Government had introduced incentives to encourage the use of CNG in a bid to lessen the impact of fuel subsidy removal, which caused a drastic spike in petrol prices and inflation. A government official emphasized that the transition to CNG was supposed to ease the economic pressure on citizens, but acknowledged that fluctuating CNG prices present a “new challenge.”
Many Nigerians have already expressed frustration at the high conversion costs, which range between ₦200,000 and ₦500,000 per vehicle. For commercial drivers, who rely on daily earnings, these conversion costs are almost unaffordable, and the additional burden of higher CNG prices has only intensified their financial woes.
Amid the backlash, some are calling for government intervention to stabilize CNG prices, arguing that without substantial support or regulation, the promise of affordable energy alternatives remains out of reach for most Nigerians.
Ejes Gist News understands that as the situation unfolds, the government faces pressure to reassess its energy strategy and provide clear solutions to ensure that the intended benefits of the CNG transition reach ordinary Nigerians without further compromising their economic well-being.
