AMID mixed feelings expressed by motorists over the hike in the price of compressed natural gas (CNG), the Presidency has blamed the latest increment on private investors.
Reacting to the hike, the Presidency, through the Presidential Compressed Natural Gas Initiative’s (PCNGI) Brands and Corporate Communications Manager, Matilda Johnson, said the increment in the price resulted from the activities of private investors.
The PCNGI stated this in a statement issued on Thursday, September 4.
It said, “It must also be emphasised that the recent pump price adjustments announced by certain operators are purely private-sector decisions and not the outcome of any government directive or policy.”
The PCNGI described the reports attributing the upward review of prices to the government as misleading.
The statement reads in part, “The Presidential Initiative on Compressed Natural Gas (PiCNG) wishes to address recent misleading and outright false reports suggesting that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CNG). This is incorrect.
“For absolute clarity: while pricing matters fall under the purview of the appropriate regulatory agencies, no directive or policy has been issued by the Federal Government to alter CNG pump prices.”
It further disclosed that the mandate of PiCNG, as directed by President Bola Ahmed Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative to petrol and diesel across the country.
The initiative (the PCNGI), the office stated, attracted close to one billion dollars in private sector investment, underscoring confidence in the market’s potential.
“The Federal Government assures Nigerians that CNG will always remain significantly cheaper, cleaner, and more affordable than PMS and diesel. Our focus remains on deepening CNG penetration nationwide and encouraging broader private sector participation to ensure availability and affordability for all,” it added.
In July 2024, the Nigerian National Petroleum Company Limited (NNPCL) commissioned 12 new Compressed Natural Gas (CNG) stations to provide alternative fuel for Nigerians.
The ICIR reports that major filling stations, including NIPCO CNG and Mobil, raised their pump prices from N230 to N380 on Monday.
Despite assurances that it would serve as a good alternative to petrol, many drivers expressed frustration over what they fear could erode the cost advantage of CNG over petrol.
Hakeem Idris, a ride-hailing driver, described the price hike development as discouraging.
“Many Bolt drivers spend up to 10 hours in queues or drive long distances just to refill. Now with this sudden increase, the whole idea of CNG being cheaper is at risk,” he said.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.