The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) has assured Nigerians that compressed natural gas (CNG) prices are not expected to follow the same upward trajectory as petrol and liquefied petroleum gas (LPG), expressing optimism that wider adoption could make the alternative fuel more affordable.
The Chief Operating Officer of Pi-CNG & EV, Tosin Coker, gave the assurance during an interview at the end of a media engagement organised by the Decade of Gas Secretariat and the initiative in Kano.
Coker attributed the anticipated price stability to Nigeria’s substantial natural gas reserves and the country’s ability to exercise greater influence over domestic gas pricing, compared with petroleum products whose prices are more exposed to developments in international markets.
He explained that geopolitical tensions, including the crisis involving Iran and wider instability in the Middle East, could place additional pressure on global petroleum prices, with potential consequences for fuel costs in Nigeria.
According to him, recent developments in the international market have contributed to increases in petrol prices, while LPG prices have also come under pressure.
CNG, however, has different supply and pricing dynamics because it is produced from natural gas, which Nigeria has in significant quantities. This, Coker suggested, could help reduce the extent to which domestic CNG prices respond to international petroleum market movements.
The assurance comes as households, transport operators and businesses continue to seek alternatives to conventional fuels amid persistent concerns over energy costs.
CNG has attracted attention as a potential option for reducing transport expenses, particularly for commercial drivers and fleet operators capable of converting their vehicles to use the fuel.
However, the affordability of CNG depends on more than the availability of natural gas. Adequate filling stations, reliable distribution networks, conversion facilities, investment and consistent supply will be important in determining how accessible the fuel becomes to consumers.
Expanding the use of CNG could also help Nigeria make greater use of its domestic gas resources while reducing dependence on petrol in parts of the transport sector.
Coker’s remarks signal the government-backed initiative’s confidence in the long-term prospects of the alternative fuel. Nevertheless, whether prices remain stable or decline will depend on developments in supply, distribution, infrastructure and consumer demand.