Dangote Refinery Moves to Crash Cooking Gas Price as Marketers Kick

• Chairman of the Dangote Group, Aliko Dangote, announced plans to slash cooking gas prices in Nigeria
• The billionaire also warned marketers and distributors of not adhering to his refinery’s pricing guidelines
• Dangote’s announcement sparked panic among cooking gas dealers, importers and distributors who operate on a slim margin

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

In a move to disrupt Nigeria’s liquified petroleum gas (LPG) market, Aliko Dangote has announced plans to cut cooking gas prices and cautioned marketers against bypassing traditional distribution channels if they do not comply with the refinery’s pricing guidelines.

The billionaire businessman disclosed this during a facility tour with the Lagos Business School’s GCEO Africa delegation at the Lekki-based refinery on Tuesday, July 15, 2025.

Dangote’s bold move to undercut LPG dealers

He stressed the need to make cooking gas affordable for low-income households as Nigeria battles rising energy poverty.

The development comes amid complaints over skyrocketing LPG retail costs, forcing many Nigerians to revert to firewood and kerosene.

Data from the National Bureau of Statistics (NBS) says that over 65% of Nigerian households lack consistent access to clean cooking fuel.

The World Health Organisation (WHO) attributes more than 95,000 deaths annually in Nigeria to indoor air pollution linked to biogas use.

Dangote refinery can meet most of LPG demands

By exploiting its high-yield LPG output, the Dangote Refinery seeks to close Nigeria’s affordability gap in the downstream gas sector, where retail prices often show several layers of distribution channels, poor infrastructure, and forex volatility.

The warning by Africa’s richest man has rattled cooking gas dealers and distributors, who rely on import-dependent supply chains and fragmented logistics.

Experts say Dangote’s statement suggests a possible vertical integration plan, where the refinery could bypass intermediaries and implement a manufacturer-to-consumer (M2C) supply strategy, potentially disrupting conventional pricing and distribution.

Analysts say that while the plan could slash household costs, it threatens existing players who operate on thin profit margins in a price-sensitive market.

Petroleumpriceng reports that the 2,000 tonnes per day at Dangote facility, if distributed, can meet over 60% of Nigeria’s daily average LPG demand, which is estimated at 3,200 tonnes.

Dangote Refinery offers cheapest LPG prices

The scale positions the refinery as a leading player in price stability, deepening market access, and displacing historic supply bottlenecks tied to imports.

Checks show that the refinery currently offers the cheapest ex-depot LPG price at N800 per kilogramme.

A previous report by Legit.ng shows that the price of the commodity slumped since April 2025 due to FX stability and waiver on accessory imports.

Analysts warn distributors

Energy policy analyst, Adeola Yusuf, revealed that with the planned price cut by the refinery, traditional suppliers have no choice but to adapt to market realities.

“These importers have long exploited the market and users due to high landing costs caused by forex volatility.

However, with Dangote’s statement, importers and depot owners will adjust as they have done with petrol prices,” he said.

Cooking gas prices crash

Legit.ng earlier reported that the price of cooking gas decreased, offering slight relief to Nigerians amid the rising cost of living.

New data showed that several depot owners, including Dangote Petroleum Refinery, have also adjusted their prices.

LPG prices in Nigeria climbed sharply at key depots, with most selling to retailers at over N900 per kilogramme, except Dangote Refinery, which sold to marketers at N855 as of Tuesday, May 20.

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

Source: Legit.ng