{"id":8014,"date":"2025-06-18T12:59:42","date_gmt":"2025-06-18T12:59:42","guid":{"rendered":"https:\/\/shakamomodu.com\/?p=8014"},"modified":"2025-06-18T12:59:42","modified_gmt":"2025-06-18T12:59:42","slug":"federal-government-launches-concessionary-gas-pricing-for-cng-to-boost-affordable-autogas-access","status":"publish","type":"post","link":"https:\/\/shakamomodu.com\/index.php\/2025\/06\/18\/federal-government-launches-concessionary-gas-pricing-for-cng-to-boost-affordable-autogas-access\/","title":{"rendered":"Federal Government Launches Concessionary Gas Pricing for CNG to Boost Affordable Autogas Access"},"content":{"rendered":"

In a strategic move to accelerate Nigeria\u2019s clean energy transition, the federal government on Tuesday officially launched a concessionary gas pricing framework<\/strong> for Compressed Natural Gas (CNG), aimed at reducing fuel costs in the autogas sector and deepening adoption of alternative energy solutions nationwide.<\/p>\n

The announcement was made at the \u2018Mobility CNG Supply Framework Kick-off Event\u2019 in Abuja by Michael Oluwagbemi, Chief Executive of the Presidential CNG Initiative (PCNGI), who likened the initiative to the gas-to-power pricing model already in use in the electricity sector.<\/p>\n

Under the framework, autogas CNG is now priced significantly lower than gas allocated for power generation or industrial use\u2014reflecting its designation as a strategic national priority. The pricing model was approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to catalyze demand and support the federal government\u2019s energy reform agenda under President Bola Tinubu.<\/p>\n

\u201cWhat we\u2019re doing today is flagging off the implementation of the concessionary pricing framework. We\u2019re structuring the market to ensure organized demand, transparent supply, and fair pricing,\u201d Oluwagbemi said.<\/p>\n

He reported explosive growth in the autogas market over the past year. The number of CNG refueling \u201cdaughter stations\u201d has tripled from just 20 to over 65, with an additional 27\u201328 new stations set to come online in the next five weeks. Major industry players, including Dangote Group, have committed to building another 100 stations, on top of the 175 already under construction.<\/p>\n

Vehicle adoption is also surging: CNG-powered vehicles increased from 4,000 to over 50,000 in one year, with projections to reach between 125,000 and 300,000 units by the end of 2025.<\/p>\n

\u201cOur goal is to lay the groundwork for 1 million CNG vehicles. If we cross 250,000 this year, that\u2019s a major success,\u201d he said, while emphasizing that private sector participation will be the key driver of conversion scale.<\/p>\n

Chijioke Uzoho, Managing Director of Gas Aggregation Company of Nigeria (GACN), praised the collaborative efforts behind the initiative. He said the Mobility CNG Supply Framework ensures full accountability from gas sourcing to final distribution, offering a transparent and standardized operational structure.<\/p>\n

\u201cThis framework is a game-changer,\u201d Uzoho stated. \u201cEvery molecule of gas delivered will be tracked, regulated, and made available at a price that supports mass-market adoption.\u201d<\/p>\n

The concessionary pricing scheme is expected to significantly lower the cost of autogas, reduce pressure on petrol imports, and support Nigeria\u2019s broader energy diversification goals.<\/p>\n","protected":false},"excerpt":{"rendered":"

In a strategic move to accelerate Nigeria\u2019s clean energy transition, the federal government on Tuesday officially launched a concessionary gas pricing framework for Compressed Natural Gas (CNG), aimed at reducing fuel costs in the autogas sector and deepening adoption of alternative energy solutions nationwide. The announcement was made at the \u2018Mobility CNG Supply Framework Kick-off […]<\/p>\n","protected":false},"author":3,"featured_media":8017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"Nigeria launches CNG pricing framework to make autogas cheaper, boosting clean energy adoption and private sector conversion efforts.","_seopress_robots_index":"","footnotes":""},"categories":[37,35],"tags":[],"class_list":["post-8014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/8014"}],"collection":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/comments?post=8014"}],"version-history":[{"count":1,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/8014\/revisions"}],"predecessor-version":[{"id":8018,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/8014\/revisions\/8018"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media\/8017"}],"wp:attachment":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media?parent=8014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/categories?post=8014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/tags?post=8014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}