CNG adoption rises as oil marketers cite bank-funded vehicle conversions

Compressed Natural Gas (CNG) adoption is on the rise as vehicle owners and commuters embrace the alternative fuel amid petrol price volatility. Oil marketers attribute this trend to the growing affordability of CNG, particularly in light of recent petrol price hikes. Financial institutions are now partnering with vehicle owners to finance CNG cylinder installations, making the transition more accessible.

Transport companies are also increasingly turning to CNG as a cost-effective solution in response to rising fuel costs. This shift follows a steep rise in petrol prices following supply disruptions and higher global crude oil prices, prompting concerns about falling sales volumes and rising operating costs. The surge in petrol prices, which reached N1,220 per litre in Lagos, has spurred more vehicle owners and transport companies to consider CNG as an alternative.

Independent CNG station operator Paul Anjoma reported a growing demand for CNG, with transport companies purchasing more CNG and hybrid vehicles to cut fuel costs. The increased interest in CNG stems from high petrol prices, encouraging consumers and businesses to seek cost-saving alternatives. As the demand for CNG grows, there is renewed focus on investing in Nigeria's gas infrastructure to support CNG distribution across the country.