FG Removes CNG Subsidy, Price Now N420

The Federal Government has officially removed subsidy on Compressed Natural Gas (CNG), leading to a sharp rise in prices and long queues at refilling stations across the country.

As of Wednesday, September 3, 2025, the cost of CNG jumped from around N220–N230 per standard cubic metre (SCM) to between N420 and N450, depending on the station and type of vehicle. 

Truck operators are now paying as high as N450 per SCM, while buses and commercial drivers are still charged a slightly lower rate of about N380.

Government officials say the subsidy removal is a deliberate move to cut spending and encourage private investment in the gas sector. According to the Presidential Compressed Natural Gas Initiative (PCNGI), the plan is to gradually move towards full deregulation.

But many Nigerians are already feeling the impact. Long queues have appeared at the few available CNG stations, with drivers sometimes waiting hours before they can refill. 

Some motorists say the high cost and scarcity may force them back to petrol, despite spending large sums converting their vehicles to CNG.

Officials argue that CNG is still cheaper than petrol, pointing out that more than 100,000 vehicles have now been converted to gas. They also highlight progress in building more stations and conversion centres nationwide.

Even so, the new price has left many Nigerians wondering if CNG can still serve as the affordable alternative it was meant to be.