Dangote Slashes Cooking Gas Price as Dealers Prepare to Adjust

Nigerians can finally breathe a sigh of relief as the Dangote Petroleum Refinery has announced a reduction in the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas. 

The refinery has cut its ex-depot price from N810 to N760 per kilogram, a move that is expected to ease pressure on households and bring stability to Nigeria’s domestic gas market.

This is a boost for households and the market

For weeks, many Nigerian families have struggled with the rising cost of cooking gas, with some even turning to firewood and charcoal as alternatives. 

Dangote’s latest price reduction offers a ray of hope, especially for residents in Lagos and other South-West states who have been hardest hit by recent shortages.

The new N760/kg rate makes Dangote’s refinery the cheapest supplier in the domestic market, far below other private depots like Matrix and Ardova, which are currently selling at around N920/kg, and A.Y.M Shafa and NIPCO, which list prices near N910/kg. Stockgap Depot remains the most expensive, charging about N950/kg.

NNPC Welcomes the Move

The Nigerian National Petroleum Company Limited (NNPCL) has applauded the price cut, describing it as a “stabilising move” that aligns with ongoing efforts to normalise supply across the country. 

The corporation, however, noted that the full effect of Dangote’s price drop might take a few days to reflect in retail markets due to vessel delays and backlog issues caused by a recent strike.

An NNPC official explained that the company is working closely with the Dangote Refinery to coordinate supply and discourage hoarding by middlemen. This collaboration aims to reduce inflationary pressures and ensure that the price cut directly benefits consumers.

Dealers to Adjust Prices

The announcement has prompted dealers across the country to prepare for adjustments in their selling prices. According to Olatunbosun Oladapo, National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), the recent scarcity was mostly confined to the South-West due to maintenance at Dangote’s facility and a strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

He explained that the situation is now improving: “Gas supply has resumed, and terminals are trucking again. We expect the backlog to clear within two to three days.”

In recent weeks, Nigerians have faced skyrocketing gas prices, with some dealers selling LPG between N2,800 and N3,500 per kilogram, compared to around N1,000 earlier in the year. At NNPC, NIPCO, and Mobil stations, where gas still sells for N1,100 to N1,300/kg, long queues have become a daily sight. 

A 12.5kg cylinder now costs between N22,500 and N43,750 in areas like Surulere, Festac, and Ijeshatedo.