Dangote Refinery Hikes Cooking Gas Prices to N820 Per Kilogram, Retailers Adjust Rates Nationwide
- Dangote Refinery has increased the price of cooking gas, triggering immediate hikes by retailers across major cities.
- The new pricing has pushed up household energy costs at a time when demand typically rises ahead of the festive season.
- Analysts, however, argue that the hike contradicts global market trends, with crude oil and FX conditions favouring lower prices.
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The cost of cooking gas has climbed again across Nigeria after the Dangote Refinery raised its ex-refinery price.
The increase has triggered a new round of price adjustments by major gas retailers and plants in cities such as Lagos, Abuja, Kano and Port Harcourt.
Source: Getty Images
The change comes only a day after the refinery reduced petrol prices, a move that generated widespread attention in the downstream petroleum sector.
The average ex-refinery price of Liquefied Petroleum Gas (LPG) rose from N800 per kilogram to N820 per kilogram, according to market data obtained from PetroleumPriceNG, a fuel pricing and monitoring platform.
Retailers match Dangote price changes
The adjustment has filtered through the supply chain, pushing up retail prices and adding pressure on households ahead of the Christmas season, when energy consumption usually rises.
A market survey by Legit.ng found that major retailers are aligning their prices with the new refinery rate.
In Lagos, Gasland in the Iju Ishaga axis raised its LPG price from N1,150 to N1,200 per kilogram. The changes have also been observed in several distribution outlets nationwide.
Dealers say they have been forced to respond to the refinery adjustment. A retailer in Lagos, Olawale Ojo, explained that margins in recent weeks have tightened, prompting fresh recalibration.
“We used to buy at N800 per kg and sell at N950, but in the last week, we purchased the product at N850 and resell at N1,150 per kg,” he said.
“We know the price cut is not significant enough, but N50 on every kilogram is something.”
Despite the increases, energy analysts believe current market fundamentals should ideally be pushing prices lower rather than higher.
They point to global oil trends and domestic currency gains as factors that should ease pricing pressure.
Analysts question price hike amid global trends
Experts say that the rise in LPG prices goes against broader market expectations.
Crude oil prices have slipped in recent weeks, while the naira has held relatively stable in the official foreign exchange market.
Brent crude averaged around $60 per barrel over the weekend as OPEC considered further supply cuts to stabilise global oil prices.
“Right now, crude sells for an average of $60 per barrel and refineries globally should adapt to the fall,” said Adeola Yusuf, an energy policy analyst.
Yusuf noted that international refiners have historically adjusted output prices in response to global crude movements.
Observers say the recent shift could trigger more market reactions, particularly with consumption surging in December.
NBS data shows regional price variations
Figures from the National Bureau of Statistics (NBS) further highlight the pressure on household energy expenses.
The bureau’s October 2025 price report showed that the average cost of refilling a 12.5kg cylinder stood at N17,731.25 nationwide.
Rivers recorded the highest average price at N17,895.00, followed by Osun and Benue. Katsina posted the lowest average at N14,725.00.
At zonal level, the South-South led with N17,114.67, while the North-Central remained the least expensive at N16,411.19.
The data reflects the wide pricing disparity that continues to define Nigeria’s LPG market.
As Dangote Refinery’s adjustment spreads through the market, the impact on families and small businesses is already visible.
Source: UGC
Many households now face steeper energy costs at a period when spending traditionally climbs.
The rise marks yet another turn in the country’s volatile cooking gas market, underscoring the sensitivity of retail prices to changes in refinery pricing and broader industry fluctuations.
Dealers release new prices for 12kg, 6kg cooking gas
Legit.ng earlier reported that Nigerians are paying a high price for cooking gas, as retailers enjoy massive profit margins of about 35% on every truckload in Lagos and Ogun states.
New data show that depot prices, driven by Dangote Refinery, have crashed drastically.
However, logistics and retailer prices combine to increase the burden on households.
Source: Legit.ng
