By Karen James
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has made it compulsory for filling stations across the country to offer Compressed Natural Gas (CNG) as an alternative to petrol. This move is part of the government’s initiative to encourage the use of cleaner and more affordable fuels.
CNG is a fuel gas stored under high pressure and is clear, odorless, and non-corrosive. It provides an eco-friendly alternative to petrol, reducing carbon emissions and reliance on fossil fuels. According to Nagendra Verma Gas, the managing director of NIPCO, AutoGas for cars, taxis, and tricycles is being sold at approximately ₦200 per standard cubic foot, while CNG for heavy commercial vehicles is priced at ₦260 per standard cubic meter.
Engr Farouk Ahmed, the chief executive of NMDPRA, announced the mandate during a meeting in Abuja. He emphasized the compulsory nature of increasing CNG accessibility for consumers at filling stations. Retail license applications will now require the presence of CNG points to be considered for approval.
Ahmed hailed the federal government’s push to promote CNG usage as a revolution in the energy sector. He highlighted the agency’s plan to incorporate CNG points in upcoming and larger petrol stations, mirroring existing facilities for petrol (PMS), diesel (AGO), and kerosene (DPK). However, he acknowledged that addressing the supply side is crucial. The NMDPRA is collaborating with producing companies, the National Upstream Petroleum Regulatory Commission (NUPRC), NNPC Limited, and the Gas Aggregation Company of Nigeria (GACN) to ensure competitive pricing and availability of CNG.
The adoption of CNG aligns with the President’s vision to transition the country towards more sustainable and cost-effective fuel options, decreasing reliance on petrol. The NMDPRA urges companies in the industry to invest in this initiative, ensuring that CNG points of sale are easily accessible to consumers throughout the country.
