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Olugbemi. Adeyinka Ogunleye
2 weeks ago
Overview
FG unveils new CNG pricing structure to promote cleaner energy
Amid surging demand for cleaner and cheaper fuel alternatives, the Federal Government on Tuesday formally launched the implementation of its Concessionary Autogas Supply and Pricing Framework for Compressed Natural Gas, aiming to regulate pricing, streamline supply and accelerate the transition to gas-powered mobility nationwide. The move, led by the Presidential Compressed Natural Gas Initiative, marks a major step in positioning CNG as a critical solution to Nigeria’s fuel subsidy removal and clean energy goals.
Speaking at the Mobility CNG Supply Framework Kick-Off event in Abuja, Programme Director of PCNGi, Michael Oluwagbemi, said the framework would regulate the fast-expanding autogas market and prevent abuse of the pricing advantage provided by the government. He explained that the new pricing structure, approved earlier in 2024 by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, allows for autogas CNG to be priced lower than gas for power generation or industrial use, recognising it as a strategic national industry.
“Today, we are flagging off the implementation of the concessionary pricing structure, which was approved by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority earlier this year,” he said. “In a system where gas is used for multiple purposes, there was the risk of arbitrage — buying cheaper gas meant for vehicles and diverting it for industrial or power generation use. This framework eliminates that risk and creates an orderly market where gas is bought, tracked, and used specifically for autogas.”
The framework also lays the foundation for a regulated and efficient marketplace, ensuring that stakeholders across the value chain, from gas suppliers to station operators and vehicle owners, can participate transparently and sustainably.
More: https://punchng.com/fg-unveils-new-cng-pricing-structure-to-promote-cleaner-energy/
