N980/kg: Cooking Gas Depot Prices Crash as Marketers Slash Rates to Rival Dangote Refinery
- Cooking gas prices in Nigeria drop significantly as fierce competition among depot owners intensifies
- Depot prices now as low as N980 per kilogram, offering relief to struggling households
- Experts predict continued price declines if the global energy market remains stable and supply improves
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Cooking gas prices are falling sharply across Nigeria as depot owners slash rates in a fierce price battle with marketers affiliated with Dangote Refinery, offering fresh relief to millions of households burdened by soaring energy costs.
The latest round of price cuts has seen depot prices drop to as low as N980 per kilogram, marking a significant reversal from the steep increases recorded just weeks ago when LPG prices surged by more than 200% in some parts of the country.
Source: Getty Images
Depot owners cut prices to stay competitive
Data from PetroleumpriceNG shows that major depot operators have reduced cooking gas prices to remain competitive as Dangote Refinery-backed marketers continue to offer lower rates.
Among the latest prices, NIPCO Lagos is selling LPG at N1,025 per kilogram, while Techno Oil has matched the same rate. Rain Oil Lagos now sells cooking gas at N1,015 per kilogram, while Matrix Warri offers it at N1,030 per kilogram.
Some depot operators have reportedly gone even lower, with prices falling to around N980 per kilogram, intensifying competition in the domestic LPG market.
Although these prices remain slightly above those offered by Dangote Refinery marketers, industry observers say the reductions represent a major turnaround from the record-high prices witnessed earlier this year.
Consumers begin to feel the impact
The decline in depot prices is gradually filtering through the retail market.
Some retailers have already adjusted their prices, with cooking gas now selling for about N1,300 per kilogram in several locations, compared to significantly higher rates recorded in previous weeks.
The development is expected to ease the financial burden on households already grappling with high transportation costs, food inflation and the rising cost of living.
For many Nigerians, the latest reduction could make cooking gas more affordable after months of persistent price increases that forced some families to switch to alternative cooking fuels.
What is driving the price decline?
Industry experts attribute the recent fall in cooking gas prices to a combination of declining global crude oil prices, increased LPG imports by marketers and government intervention aimed at stabilising the market.
Energy policy analyst Adeola Yusuf said government efforts to discourage hoarding and encourage greater LPG supply have helped accelerate the price decline.
"We are experiencing a fall in prices because of the pressure by the government on marketers to increase LPG imports to crash prices. Also, the threats by the government to penalise hoarders contributed to the price crash," Yusuf told Legit.ng.
The increased competition triggered by Dangote Refinery's pricing strategy has also forced independent depot owners to reduce their prices in a bid to retain customers.
More relief could be on the way
Market analysts believe cooking gas prices could remain on a downward trend if global energy prices stay moderate and import volumes continue to improve.
However, they caution that exchange rate volatility, logistics costs and changes in international LPG prices remain key factors that could influence future pricing.
Source: Getty Images
For now, the ongoing price war among depot operators is providing much-needed relief to consumers, with expectations that lower depot prices will continue to translate into cheaper cooking gas for households across Nigeria in the coming weeks.
Marketers drop cooking gas prices nationwide
Earlier, Legit.ng reported that recent reductions in cooking gas prices across Nigeria, as major marketers like Dangote, Techno Oil, and Ardova cut their depot rates, provided much-needed relief to consumers after a period of sharp price increases.
As global crude oil prices continue to decline, the potential for further reductions remains a topic of keen interest, with experts suggesting that cooking gas could soon retail for under N1,000 per kilogram, easing the burden on households reliant on this essential commodity.
Source: Legit.ng
