NMDPRA denies subsidies in the oil sector, gas, clarifying the increase in CNG prices

Nigeria Midstream and the downstream oil regulatory authority (NMDPRA) have rejected subsidized claims in the oil and gas sector, insisting that the country operates a complete deregulation market.

The Director of Public Affairs at NMDPRA, George Ene-Ya, made this known in Abuja on Friday when reacting to reports that show that the federal government has removed subsidies or raised the price of compressed natural gas (CNG).

“What we have is the basic price for our gas resources, including CNG as determined by the Oil Industry Law,” said the spokesman.

His comments followed the surge in the price of the new CNG pump in Abuja, where the filling station raised interest rates from ₦ 230 to ₦ 380 per cubic meter standard, triggering a long queue in the middle of a limited supply. Industrial observers associate an increase in the infrastructure deficit that continues to limit distribution, especially in Abuja and Lagos.

Also read: The Nigerian government clarifies gasoline, additional diesel costs

Ene-I explained that the determination of gas prices was compared to the base line determined based on the Oil Industry Act (PIA), and any adjustment included in the framework remains valid.

Likewise, the President’s initiative on compressed natural gas (P-CNGI) emphasized that there was no direction issued by the federal government to change the price of the CNG pump, adding that the recent increase was “Pure Private Sector Decision.”

This initiative reiterated that the mandate, as directed by the President of the Tinubu Bola, was to encourage the growth of the Nigerian CNG mobility market and promote alternative adoption that was cheaper, cleaner, and more sustainable for gasoline and diesel.