NMDPRA dismisses subsidy claims, attributes CNG price surge to market forces

By Kunle Sanni –

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that there are no subsidies in the country’s oil and gas sector, insisting that Nigeria operates a fully deregulated market.

The Director of Public Affairs at NMDPRA, George Ene-Ita, disclosed this to the News Agency of Nigeria (NAN) in Abuja on Friday while reacting to reports suggesting that the Federal Government had either reintroduced subsidies or increased the price of Compressed Natural Gas (CNG).

This comes amid a sharp increase in CNG pump prices within the Federal Capital Territory. Refilling stations raised the cost from N230 to N380 per Standard Cubic Metre earlier this week, resulting in long queues across Abuja and Lagos. Industry sources attribute the hike to product scarcity linked to inadequate infrastructure.

“What we have is a baseline price for our gas resources, including CNG, as dictated by the Petroleum Industry Act. As long as the prevailing market price aligns with this baseline, then the pricing remains legitimate,” Ene-Ita explained.

Similarly, the Presidential Initiative on Compressed Natural Gas (P-CNGi) dismissed suggestions of government interference in CNG pricing, stressing that no directive had been issued to alter pump prices.

It added that the recent adjustments by operators were private-sector decisions, not the result of any government policy.

The P-CNGi reaffirmed its mandate from President Bola Tinubu to drive the development of the CNG mobility market and promote the adoption of cheaper, cleaner, and more sustainable alternatives to petrol and diesel nationwide.