N85 Increase: Dangote Refinery Announces New Cooking Gas Price
- Nigerians are set to pay more for cooking gas as Dangote Refinery raises the ex-gantry price of LPG by N85
- The increase is the first major adjustment of the year amid rising domestic demand and crude oil market changes
- Market disruptions, supply constraints, and operational challenges at key factors for changes in cooking gas prices
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 Petroluem Refinery has increased the ex-gantry price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, from N715 per kilogram to N800/kg.
The increase is the refinery's first major adjustment of the year.
Source: Getty Images
The new price was captured by a Pro Formal Invoice (PFI) obtained by Petroleumprice.ng.
New LPG price
The price revision comes amid ongoing market disruptions and rising domestic demand.
Industry analysts attribute the increase to supply constraints and operational challenges at key production facilities.
Current market rates at depots vary widely, with AA Rano selling at N925/kg, Navgas at N920/kg, and Ardova at N915/kg, illustrating the uneven cost burden on consumers.
The Federal Government previously linked recent spikes in cooking gas prices to industrial action at Dangote Refinery and maintenance at Nigeria LNG’s Train 4 facility.
Dangote’s new ex-gantry price signals that downstream distributors and retailers may continue adjusting retail rates.
Source: Getty Images
To ensure no exploitation, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has increased monitoring across LPG depots nationwide, urging marketers to act responsibly despite the deregulated nature of the LPG market.
Earlier this month, Punch reports that Olatunbosun Oladapo, immediate past president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), said the price volatility was temporary and expected to ease once supply stabilised.
Olatunbosun said the country’s LPG consumption had grown from about 900,000 metric tonnes four years ago to over two million metric tonnes in 2024.
Olatunbosun noted that the rising cost of LPG and uneven supply remain key concerns.
The new N800/kg ex-gantry price by Dangote refinery will now serve as a benchmark for distributors and retailers, though analysts warn that logistical challenges and maintenance at other key facilities could keep retail LPG prices volatile.
Currently, cooking gas prices average between N1,050 and N1,200 per kg.
FG moves to increase access to cooking gas
Earlier, Legit.ng reported that President Bola Ahmed Tinubu has commissioned the WAGL Energy Limited's 40,000 cubic metres (CBM) Liquefied Petroleum Gas (LPG) vessel, christened "MT Iyaloja (Lagos).
With this addition, WAGL’s fleet now comprises five LPG carriers, including MT Africa Gas, MT Sahara Gas, MT BaruMK and MT Sapet and total capacity of 162,000 cubic meters.
The vessel was named in honour of Alhaja Abibatu Mogaji, the late mother of President Tinubu, with the ribbon-cutting performed by her granddaughter, Folasade Mujidat Tinubu-Ojo, Iyaloja-General of Nigeria.
The fleet expansion strengthens LPG supply, but the immediate challenge remains stabilising retail prices.
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Source: Legit.ng
