The price of Compressed Natural Gas (CNG) promoted by the Federal Government as a cheaper alternative to petrol and diesel has also begun an upward climb.
Reports emerging indicated that the cost of one standard cubic metre of CNG has moved from N230 to N450.
The Punch reported that the price movement followed the reduction of the subsidy on the commodity recently.
It was gathered that trucks now pay N450 per SCM, while other users, such as car owners and commercial vehicle operators, still enjoy some subsidies, which leaves their own price at N380 per SCM.
A source within the Presidential Compressed Natural Gas Initiative (PCNGI) told the publication that the difference in the prices is to ensure that the transportation cost does not go up.
The source also said the focus of the PCNGI is to increase the availability of gas by opening up more refuelling stations across the country.
A major retailer of CNG predicted that the price may rise to N500 or N600/SCM soon, as the FG tries to woo investors into the sector.
It was gathered that some car owners who were lured by the cheap price of natural gas converted their cars from petrol to CNG with up to N1.5 million.
The upward climb of the commodity is now giving them concerns about whether it was the right move after all. Many expressed fears that once the natural gas is fully deregulated, its price may compete with the price of petrol in the near future.
There has also been the issue of scarcity of the commodity, as there are not many filling stations dispensing it yet.
The few ones available in the major cities are always besieged by buyers, leading to motorists queuing for long before being able to purchase the gas.
