Dangote Refinery, Private Depots Release New Cooking Gas Prices, Retailers Adjust
- Nigeria's LPG market faced fresh price adjustments amid global oil volatility due to Middle East tensions
- Dangote Refinery lowered LPG price to N790 per kilogramme, but disparities persisted across major depots
- Analysts urged caution as geopolitical events impact energy costs, recommending strategic reserves for future stability
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s liquefied petroleum gas (LPG), commonly known as cooking gas, market is experiencing fresh price adjustments after major suppliers, including the Dangote Refinery and private depot operators, reviewed their rates amid volatility in global crude oil markets.
Source: Getty Images
The changes come as international oil prices remain unstable following tensions in the Middle East, which have disrupted supply chains and pushed up the cost of several petroleum products worldwide.
Global oil tensions push energy prices higher
Recent developments in the Gulf region have triggered a sharp increase in crude oil prices, which rose by more than 30% within a short period.
The spike was largely driven by geopolitical tensions involving the United States, Israel, and Iran, raising concerns about possible disruptions to global oil shipments.
The situation has also affected key shipping routes, particularly the Strait of Hormuz, one of the world’s most important energy corridors through which a significant portion of global crude supply passes.
Industry observers say uncertainty surrounding the waterway has caused ripple effects across energy markets, driving up prices for petroleum products such as petrol and cooking gas.
Energy policy analyst Adeola Yusuf noted that developments in the Gulf region are already affecting global markets.
“The entire world is affected by what is happening in the Gulf region, and Nigeria is not insulated,” Yusuf told Legit.ng in a phone interview.
He added that energy markets are currently experiencing significant volatility.
“Right now, there is so much jitter in the market, and countries such as the United Kingdom are already seeing energy prices surge over the past two weeks,” he said.
Dangote Refinery lowers LPG price
Despite the global pressure on energy prices, findings by Legit.ng show that the Dangote Refinery has reduced the price of liquefied petroleum gas.
The refinery reportedly lowered its LPG price from above N1,000 per kilogramme to about N790 per kilogramme, a move that could potentially ease the cost burden on consumers if the reduction filters through the supply chain.
However, the adjustment has yet to be fully reflected across major gas depots, with several operators still maintaining higher prices.
Data from PetroleumPriceNG shows that LPG prices vary across different depots. Matrix Warri currently sells at about N1,005 per kilogramme, Ardova at N975, and Techno Oil at N910 per kilogramme.
Dangote’s price of roughly N790 per kilogramme remains the lowest among major suppliers.
The disparity highlights the lag between wholesale price adjustments and their impact on the wider market.
Retailers in Lagos begin to adjust prices
At the retail level, some cooking gas sellers in Lagos say they have started adjusting prices following the reduction announced by the Dangote Refinery.
Olalekan Ajayi, a cooking gas retailer in the Iju area of Lagos, said retail prices had previously climbed to as high as N1,150 per kilogramme during the recent spike.
According to him, the situation began to change in the second week of March as suppliers gradually lowered their rates.
“Last week, we sold for as high as N1,150 per kilogramme, but prices have started dropping slightly after Dangote and some depot operators reviewed their prices,” Ajayi said.
Although the reduction remains modest, retailers believe further adjustments could occur if depot prices continue to decline.
Experts urge caution as uncertainty lingers
Energy analysts say the current situation highlights how global geopolitical tensions can quickly influence domestic energy costs.
With uncertainty in the Middle East still unresolved, experts are advising governments and energy stakeholders to take precautionary steps to protect supply.
Source: Getty Images
Analysts recommend building strategic reserves of key petroleum products, including cooking gas, to cushion consumers against future supply disruptions and price shocks.
Dealers release new rates for cooking gas
Legit.ng earlier reported that Nigerian households were set to feel the impact of the ongoing conflict involving the United States, Israel, and Iran on their pockets.
New data showed that cooking gas prices rose sharply, with depot rates approaching N1,000 per kilogramme and retail prices climbing to around N1,300/kg.
The increase came following the rise in crude oil and LPG prices on the international market.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
