Again, Dangote Refinery Increases Cooking Gas Price, Marketers to Release New Rates Per KG
- Cooking gas prices in Nigeria have risen to about N1,000 per kilogramme at retail outlets
- The Dangote refinery increased its LPG ex-gantry price to N825 per kilogramme, influencing market rates
- Marketers attribute the rise to logistics costs, global crude oil prices, and supply chain challenges
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Dangote Petroleum Refinery has increased its ex-gantry price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, from N800 to N825 per kilogramme on Monday.
This marks the second increase in less than 48 hours, as the refinery had raised the price from N760 to N800 last weekend.
Source: Getty Images
As a result of the adjustments at the Dangote refinery, fresh pressure is building on household energy costs in Nigeria as marketers prepare to also increase prices.
According to the Nigerian Association of Liquefied Petroleum Gas Marketers, retail prices have already climbed to about N1,000 per kilogramme, driven by higher supply costs and broader global oil market trends.
Marketers confirm rising retail prices
Speaking in an interview with The PUNCH, the association’s Publicity Secretary, Damilola Owolabi-Osinusi, said consumers should expect further increases.
She explained that logistics costs, including haulage and loading expenses, have risen significantly, adding pressure to the final price paid by consumers.
Her comments highlight a growing gap between ex-depot prices and what households pay at retail outlets.
Logistics, global oil prices worsen situation
Operators in the sector noted that the situation is not driven by refinery pricing alone. Rising transportation costs, linked to higher diesel prices and operational challenges, are also contributing.
Additionally, global crude oil prices continue to play a major role. Since LPG is derived from hydrocarbons, increases in crude oil prices push up the cost of propane and butane, key components of cooking gas.
This, in turn, raises import costs and puts further pressure on domestic prices.
Nigeria’s dependence on imports adds vulnerability
Despite being a major gas producer, Nigeria still depends partly on imports and market-based pricing for LPG. This exposes the country to global energy market fluctuations.
Stakeholders also pointed to foreign exchange volatility, high shipping and terminal charges, and infrastructure gaps as factors driving the price increases.
Impact on households, clean energy goals
The expected increase could further strain households already facing rising food and energy costs, particularly in urban and semi-urban areas where LPG is widely used.
Although the federal government has been promoting LPG adoption as part of its clean energy transition strategy, repeated price hikes may affect affordability and slow adoption.
Marketers warned that prices may remain elevated unless crude oil prices decline or targeted interventions are introduced to ease logistics and distribution challenges.
Source: Getty Images
Dangote Refinery exports fuel to 5 African countries
Legit.ng earliers reported that the Dangote Refinery has exported 12 cargoes of refined petroleum products totalling 456,000 tonnes to five African countries, expanding its regional presence amid ongoing fuel supply challenges linked to geopolitical tensions in the Middle East.
The cargoes were shipped to Côte d’Ivoire, Cameroon, Tanzania, Ghana, and Togo. The products were sold to international traders on a Free on Board basis after the refinery reached its 650,000 barrels-per-day capacity in February 2026.
The development comes as many African countries continue to grapple with fuel shortages and price volatility, worsened by geopolitical tensions affecting global supply chains.
Source: Legit.ng
