Good News: Dangote Crashes Cooking Gas Price, Dealers To Make Adjustments
- Aliko Dangote has confirmed that his refinery has reduced the price of cooking gas (LPG), signalling relief for Nigerians
- The refinery's decision will provide the needed support to stabilise Nigeria’s domestic gas market amid scarcity
- The Nigerian National Petroleum Company Limited has applauded Dangote’s price cut and described it as a welcome development
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery has decided to reduce the ex-depot price of Liquefied Petroleum Gas (LPG), also known as cooking gas, to N760 per kilogram.
The change represented a N10 reduction from the N810/kg sold previously.
Source: Getty Images
Dangote Refinery's new LPG price
Dangote Refinery's new LPG price is the lowest price in the Nigerian domestic market, according to data from petroluemprice.ng .
Other private depots like Matrix and Ardova depots are pricing LPG at N920/kg while A.Y.M Shafa and NIPCO list N910/kg, while Stockgap Depot tops the chart at N950/kg.
The price gap between Dangote and other private depots is about N150 to N190 per kilogramme.
NNPC praises Dangote
The Nigerian National Petroleum Company Limited (NNPCL) has commended Dangote’s price cut, describing it as a “stabilising move” aligned with ongoing efforts to normalise supply.
NNPCL officials, however, noted that the market may take “a few more days” to feel the full effect, citing vessel delays and depot backlogs from the recent strike.
The company pledged to coordinate supply efforts with Dangote to discourage stockpiling and ease inflationary pressures.
Cooking gas scarcity hits Nigeria
Lagos residents and other South-West states have faced weeks of gas scarcity.
Source: Getty Images
The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Olatunbosun Oladapo, confirmed that the scarcity was largely limited to the South-West, noting that supply remained stable in other regions, Guardian reports.
Oladapo said:
“The scarcity is not nationwide. Gas is available in the South-South and East, but the South-West experienced shortages due to recent disruptions.
"Maintenance was carried out at Dangote, and immediately after that, PENGASSAN embarked on strike, which delayed vessels carrying gas from NLNG. Now that terminals have resumed trucking, the backlog will take two to three days to clear."
Report showed dealers now sell LPG between N2,800 and N3,500/kg, up from N1,000/kg weeks earlier, while at Mobil, NNPCL, and NIPCO stations, limited pumps dispense gas at N1,100 to N1,300/kg, with long queues stretching for hours.
In areas like Surulere, Festac, and Ijeshatedo, a 12.5kg cylinder now costs between N22,500 and N43,750.
Cooking gas price in Nigeria
Earlier, Legit.ng reported that NALPGAM have accused the LPG terminal operators of causing the country's high cooking gas cost.
Oladapo Olatubosun said the product price would have remained low since the terminal operators get the price at cheaper costs from the Nigeria LPG plant.
He stated that the terminal owners get the product at N9 million for 20 metric tons and sell it to the marketers at N16.8 million per 20 metric tons.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
