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HOW LOWER CNG PRICES INSTEAD OF PETROL CAN BE SUSTAINABLE IN NIGERIA
2 months ago
Making CNG cheaper than petrol is a win–win. Nigerians spend less, investors still earn, and the country uses its own gas instead of expensive imported fuel. That’s why a lower CNG price can be sustainable in Nigeria.
High Petrol Prices in Nigeria or Lower CNG
Petrol in Nigeria currently costs about ₦865–₦890 for one litre. An average car that a Nigerian might drive for work or errands will need around 50 litres in a month if the person drives about 20–25 km a day.
That means drivers will spend roughly ₦43,000 to ₦45,000 every month just on fuel.
Consider a person earning a basic salary of ₦300,000 a month. Out of that money, almost ₦45,000 goes straight into the fuel tank before thinking about rent, food, school fees, transport, or anything else.
In plain words, about 15 kobo out of every ₦1 this person earns disappears into petrol costs each month.
This is the typical scenario for a Nigerian who needs a car to get about daily.
Now, put this side-by-side using CNG instead of petrol to see how much the same person spends daily/monthly.
Current CNG Prices Across Nigeria
CNG is being sold at various prices across Nigeria, typically between ₦230 and ₦500 per SCM, depending on location and supply conditions.
This range offers a significant cost savings—about 74% cheaper than petrol for the same distance covered on petrol.
Assumptions with Relevant Sources
Typically, one cubic metre of CNG gives about the same power as 38 units of energy and one litre of petrol gives about 34.8 units of energy. In everyday terms, a tank of CNG takes a car a little farther than the same amount of petrol.
To compare CNG fairly with petrol, it is important to adjust for the fact that one cubic metre of CNG gives a bit more energy than one litre of petrol.
In other words, take the CNG price and knock off about 10% — that’s the true petrol-equivalent price. Recent data reports pump prices at about ₦865/L in Lagos and ₦890/L in Abuja.
Keeping CNG cheaper than petrol is quite sustainable. Affordability for Nigerians is key and petrol at today’s price takes up about 15% of a ₦300k salary just for fuel.
With CNG, a car could run on ₦18k–₦26k per month, cutting costs almost in half. This makes it a realistic option for workers, transport operators, and households.
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