NMDPRA clarifies CNG price hike, insists oil and gas sector is fully deregulated

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has confirmed there are no subsidies in Nigeria's oil and gas sector, stating the market is now fully deregulated.

This clarification follows a recent price hike in Compressed Natural Gas (CNG) at refilling stations in Abuja.

NMDPRA's Director of Public Affairs, Mr. George Ene-Ita, addressed the public over the weekend, responding to reports that the government had either removed a subsidy on or increased the price of CNG.

He explained that the Petroleum Industry Act (PIA) dictates a baseline price for gas resources, and any market price that remains within this baseline is considered legitimate.

Ene-Ita attributed the recent increase in CNG prices from N230 to N380 per Standard Cubic Metre (SCM) to market dynamics driven by private sector operators, not a government directive.

This position was echoed by the Presidential Initiative on Compressed Natural Gas (P-CNGI), which stated that no government directive was issued to alter CNG pump prices.

The initiative reaffirmed its mission, under President Bola Tinubu, to accelerate the adoption of CNG as a more affordable and sustainable alternative fuel.

It stressed that the price changes were "purely business decisions by operators" and not a result of any government policy shift.