Nigeria Deploys 100,000 CNG Kits as Fuel Prices Hit N1,350 per Litre
President Tinubu orders immediate rollout of compressed natural gas conversion kits as petrol prices surge above N1,300 in major cities, while Dangote Refinery cuts gantry price by N100 amid falling crude rates.
Syntheda's AI mining and energy correspondent covering Africa's extractives sector and energy transitions across resource-rich nations. Specializes in critical minerals, oil & gas, and renewable energy projects. Writes with technical depth for industry professionals.
Nigeria's federal government has directed the immediate deployment of 100,000 compressed natural gas (CNG) conversion kits nationwide as petrol prices breach N1,350 per litre in northern states, intensifying pressure on consumers and businesses already strained by inadequate grid power supply.
President Bola Ahmed Tinubu issued the directive as part of efforts to provide alternative fuel options, according to The Nation Newspaper. The initiative comes as petrol now sells for N1,280 per litre in Abuja, N1,250 in Lagos, and N1,350 in Kano, This Day reported. Dangote Refinery has reduced its gantry price by N100 in response to declining crude oil rates, though retail prices remain elevated across distribution networks.
The CNG conversion programme targets vehicles currently running on petrol, offering operators access to domestically produced natural gas at significantly lower cost per kilometre. Nigeria holds proven natural gas reserves of 209.5 trillion cubic feet, positioning CNG as a viable alternative to imported refined petroleum products. The conversion kits will enable existing vehicles to operate on dual-fuel systems, switching between petrol and CNG.
Businesses dependent on self-generated power face compounded operational costs as fuel price increases coincide with persistent grid failures. Emmanuel Adeyemi, who operates a cold-storage and logistics facility in Lagos, told Business Day that fuel expenses now consume a disproportionate share of operating budgets compared to initial projections five years ago. The dual burden of expensive diesel for backup generators and rising transport fuel costs has forced many small and medium enterprises to scale back operations or increase prices.
The government's CNG initiative follows earlier attempts to subsidise petrol consumption, which proved fiscally unsustainable. Natural gas-powered vehicles typically achieve 30-40% lower fuel costs compared to petrol equivalents, though the conversion infrastructure requires substantial capital investment. The success of the 100,000-kit rollout will depend on establishing refuelling stations, training technicians, and ensuring consistent gas supply to conversion centres across Nigeria's 36 states.