Cooking Gas Price Crashes, Depot Owners Quote New Costs amid Intense Competition

• Depot owners have intensive competition with Dangote Refinery regarding the price of liquified natural gas (LPG), also known as cooking gas
• Recent reports show that depot players have slashed the product’s price to stay competitive amid Dangote’s market dominance
• Dealers such as NIPCO, Ardova, and A.A Rano have all slashed its prices to encourage off-take and stay competitive

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The domestic liquified petroleum gas (LPG) market has seen a significant price dip, with several depot owners cutting prices as they try to stay competitive against Dangote Refinery’s market dominance.

An analysis of updated market data shows that Dangote’s cooking gas price dropped by N25 to N870 per kilogramme, indicating a 2.79% decline, the steepest among major sellers.

Cooking gas price: Which depot's cost is cheapest?

However, other rival depots such as A.A Rano matched the mega refinery’s price by slashing its LPG prices by N25 to N877 per kilogramme, showing a 2.78 drop.

The current price trajectory shows growing competition in Nigeria’s LPG supply chain.

Petroleumpriceng reported that while Dangote continues to leverage its refining power to supply cooking gas, depot owners such as A.A Rano and Ardova Petroleum are now actively reducing prices to stay competitive and maintain their customer base.

LPG prices: More depot rival Dangote Refinery

According to reports, Ardova and NIPCO in Lagos both slashed prices by N5 each, now selling at N885 per kilo.

11Plc remains at N885 per kilo, maintaining a wait-and-see attitude amid price uncertainty.

This pricing rivalry amid downstream players aggressively trying to offtake amid fluctuating demand.

Depot price cuts may provide a temporary relief for retailers and consumers who faced high cooking gas prices in recent weeks.

Retailers and plants slash LPG prices

A prior report by Legit.ng indicated that cooking gas prices began to slide last week when plants and retailers reduced the cost from N1,050 per kilo to N1,000.

The report disclosed that a 12.5kg cylinder refill, which sold for N13,125 previously, now sells for N12,500. 

The price corrections also show pressure on Dangote, whose pricing moves influence the wider market due to its size and brand power.

However, with private depot owners now matching and even undercutting the refinery’s rate, the cooking gas market appears to be entering a price-sensitive era.

Experts expect more price cuts

Experts say the price cuts may also be linked to recent tanker activity, with LPG vessels currently offloading into the NIPCO depot.

Increased import volumes and improved supply logistics may contribute to easing prices at the depot level.

Also, as demand for cooking gas increases in urban and semi-urban areas, depot owners are recalculating prices to encourage lifting and move inventory quickly.

FG takes action to crash cooking gas prices

Legit.ng earlier reported that the Nigerian government halted the export of locally produced Liquefied Petroleum Gas (LPG), also known as cooking gas, effective November 1, 2024.

Ekperikpo Ekpo, the Minister of State for Petroleum Resources (Gas), disclosed the directive.

The order seeks to prioritise domestic supply over exports to alleviate the burden of rising costs on Nigerian consumers.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng