Dangote Refinery Slashes Cooking Gas Prices, Offering Relief to Nigerian Consumers
Dangote Petroleum Refinery has announced a reduction in its Liquefied Petroleum Gas (LPG) prices, marking a significant development in Nigeria’s domestic gas market. The refinery has lowered its ex-depot price to N760 per kilogram, down N10 from its previous rate of N810/kg.
This new pricing positions Dangote Refinery as the most competitive supplier in Nigeria’s LPG market. Current market data from petroleumprice.ng shows other major suppliers charging significantly higher rates: Matrix and Ardova depots at N920/kg, A.Y.M Shafa and NIPCO at N910/kg, and Stockgap Depot at N950/kg. The price differential between Dangote and other suppliers now ranges from N150 to N190 per kilogram.
The Nigerian National Petroleum Company Limited (NNPCL) has welcomed this price reduction, viewing it as a positive step toward market stabilization. However, NNPCL officials cautioned that consumers might need to wait several days to see the full impact, citing recent disruptions from industrial action and ongoing logistics challenges.
The price adjustment comes amid a severe cooking gas shortage, particularly affecting Lagos and other South-Western states. According to Olatunbosun Oladapo, National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), the scarcity has been primarily concentrated in the South-West, while other regions maintain stable supply levels.
“The scarcity is not nationwide. Gas is available in the South-South and East, but the South-West experienced shortages due to recent disruptions,” Oladapo explained. He attributed the supply constraints to maintenance at Dangote facilities and a PENGASSAN strike that delayed NLNG vessel deliveries.
The current market situation has pushed retail prices to unprecedented levels. Consumers now face prices ranging from N2,800 to N3,500/kg, a dramatic increase from N1,000/kg just weeks ago. At major stations like Mobil, NNPCL, and NIPCO, where prices remain relatively lower at N1,100 to N1,300/kg, long queues have become common. In areas like Surulere, Festac, and Ijeshatedo, a 12.5kg cylinder costs between N22,500 and N43,750.
NALPGAM has pointed to LPG terminal operators as key contributors to the high prices, noting that these operators purchase product at N9 million per 20 metric tons from Nigeria LPG plants but resell to marketers at N16.8 million, significantly impacting final consumer prices.
This price reduction by Dangote Refinery represents a potential turning point in Nigeria’s domestic gas market, though its full impact on retail prices remains to be seen as the supply chain adjusts to these new conditions.
