NNPC Partner Gives Reason CNG Price Will Crash, As More Nigerians Convert Cars

• NNPC has predicted a significant drop in Compressed Natural Gas (CNG) prices in Nigeria as adoption increases
• The belief is that when major gas projects are completed, the cost of CNG, currently priced around 200, will drop further
• More Nigerians are converting their vehicles to CNG-compatible systems and taking advantage of new filling stations currently being set up

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Cleanergy Innovation Limited (CIL), a partner of the Nigerian National Petroleum Company Limited (NNPCL), has projected a significant drop in the price of Compressed Natural Gas (CNG) once the Ajaokuta Kaduna Kano (AKK) Gas pipeline becomes operational.

Shettima Bukhar Imam, CIL's Executive Vice Chairman, stated this at the inauguration of an NNPCL CNG station in Abuja.

Read also

Dangote refinery confirms date for release of petroleum product for Nigerians to buy

Imam reassured journalists at the event that increased demand for CNG will not lead to price hikes, unlike Premium Motor Spirit (PMS).

He cited the AKK pipeline as a major project that will make CNG even cheaper for Nigerians.

The pipeline is scheduled for completion by the first quarter of 2025.

CNG price to drop

The CIC boss noted that the AKK pipeline project will make gas distribution more efficient.

His words"

"With the AKK pipeline in place, gas distribution will be efficient.

"Stations will produce and supply CNG seamlessly, eliminating the need for costly transportation methods currently affecting PMS."

Imam emphasized that only 3% of Nigeria's gas production is utilized for CNG, ensuring no shortage that could drive prices up.

Read also

“It was impossible”: NNPC gives reasons for scarcity as filling stations adjust petrol pump price

Stressing his point, he highlighted the abundance of natural gas in Nigeria compared to imported PMS.

Imam also disclosed ongoing plans to establish more CNG stations in Abuja and Lagos at the event.

Nigerians rush to NNPC station to buy fuel priced at N200

Legit.ng previously reported that more Nigerians are turning to CNG to cut fuel expenses, as petrol prices have increased in the past month.

The report shows that some filling stations in certain states ask motorists to pay up to N937 per litre for petrol.

The federal government has decided to subsidise transporters to convert their vehicles from petrol to CNG.

Source: Legit.ng