NMDPRA denies subsidy in oil, gas sector, clarifies CNG price hike

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has dismissed claims of subsidy in the oil and gas sector, insisting that the country operates a fully deregulated market.

Director of Public Affairs at the NMDPRA, George Ene-Ita, made this known in Abuja on Friday while reacting to reports suggesting that the Federal Government had either removed subsidies or increased the price of Compressed Natural Gas (CNG).

“What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act,” the spokesperson said.

His comments followed a recent surge in CNG pump prices in Abuja, where refilling stations raised rates from ₦230 to ₦380 per Standard Cubic Metre, sparking long queues amid limited supply. Industry observers linked the increase to infrastructure deficits that continue to constrain distribution, particularly in Abuja and Lagos.

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Ene-Ita explained that gas pricing is benchmarked against a baseline set under the Petroleum Industry Act (PIA), and any adjustments that fall within that framework remain legitimate.

Similarly, the Presidential Initiative on Compressed Natural Gas (P-CNGi) stressed that no directive had been issued by the Federal Government to alter CNG pump prices, adding that recent increases were “purely private-sector decisions.”

The initiative reaffirmed that its mandate, as directed by President Bola Tinubu, is to drive the growth of Nigeria’s CNG mobility market and promote the adoption of cheaper, cleaner, and more sustainable alternatives to petrol and diesel.

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