Filling Stations to Sell Compressed Natural Gas at Government-Approved prices

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has mandated filling stations nationwide to initiate the sale of Compressed Natural Gas (CNG).

CNG, a pressurized fuel gas, maintains clarity, odorlessness, and non-corrosiveness, serving as an alternative to petrol.

According to Nagendra Verma, the Managing Director of NIPCO Gas, AutoGas for cars, taxis, and tricycles is priced at approximately ₦200 per standard cubic foot, while CNG for heavy commercial vehicles is sold at ₦260 per standard cubic meter (SCM).

Engr Farouk Ahmed, the Chief Executive of NMDPRA, stated during a meeting in Abuja that it is now mandatory for filling stations to enhance accessibility to CNG for consumers.

Ahmed also emphasized that new applications for retail licenses would not be approved unless they include provisions for CNG points.

He further characterized the federal government’s efforts to promote the use of CNG as an alternative to petrol as revolutionary.

He said, “We aim to soon have CNG add-ons in most of our upcoming and larger petrol stations, similar to our existing PMS, AGO, and DPK facilities, to ensure easy access for consumers. However, we must first address the supply side. We are collaborating with producing companies, our sister agency NUPRC, NNPC Limited, and the Gas Aggregation Company of Nigeria (GACN) to ensure the product is available at a competitive cost to consumers.

 “This effort aligns with the President’s objective of transitioning the country to more CNG usage for mobility, reducing our heavy dependence on PMS. We are urging companies to invest in this initiative and ensure that CNG points of sale are accessible to consumers.

“After completing consultations, we will mandate that CNG add-ons be included in petrol stations. For new applications, having a CNG add-on will be a requirement for petrol stations.”