The Presidential Compressed Natural Gas Initiative, PCNGI, has clarified that the federal government does not provide subsidies on Compressed Natural Gas, CNG, following the recent hike in pump prices by some operators.
In a statement yesterday, PCNGI explained that pricing decisions are solely at the discretion of private sector players, while stressing that government agencies will continue to guard against 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,” the statement said.
It noted that PCNGI neither sets nor regulates CNG prices, as this falls under the mandate of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)..”
It emphasized that “The era of opaque subsidies that crippled the PMS/AGO sector will not be replicated in the CNG market. Instead, the CNG sector is being developed as a transparent, investment-driven market where healthy competition will drive costs down over time.
“Over $1 billion in investments have been attracted into the CNG sector in the last 18 months under the administration of President Bola Ahmed Tinubu. Protecting these investments requires consistency, transparency, and a market-driven approach.
