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Dangote

The Dangote Petroleum Refinery has continued to influence Nigeria’s cooking gas market through price adjustments aimed at improving affordability and strengthening domestic supply.

The refinery has previously reduced its ex-depot price of Liquefied Petroleum Gas, LPG, as part of efforts to make cooking gas more accessible to Nigerian consumers and encourage wider adoption of the fuel.

The latest price development comes amid continuing concerns over the cost of cooking gas, which has placed pressure on households and small businesses that depend on LPG for cooking.

Dangote Refinery’s intervention has increasingly become an important factor in the domestic LPG market, with its pricing decisions capable of influencing competing suppliers and downstream retailers.

In October 2025, the refinery reduced its LPG price from ₦810 to ₦760 per kilogram, according to Radio Nigeria. At the time, competing depots were selling at significantly higher rates, while one depot was reported at ₦950 per kilogram.

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The refinery’s pricing strategy has been viewed as part of a broader attempt to increase domestic supply and introduce greater competition into the cooking gas market.

Industry data previously showed that bulk LPG prices varied substantially among depots, with some suppliers selling around ₦920 per kilogram while others reached ₦950 per kilogram. Dangote was among the lower-priced suppliers during that period.

The price movements are significant for Nigerian households because LPG remains one of the major alternatives to firewood, kerosene and other traditional cooking fuels.

Lower depot prices can potentially translate into reduced retail prices, although the final amount paid by consumers is also influenced by transportation costs, distribution margins, storage expenses and local market conditions.

The Dangote refinery has emerged as a major player in Nigeria’s downstream petroleum sector since commencing operations, with its domestic production expected to reduce dependence on imported refined petroleum products and support local supply.

For consumers, however, the key concern remains whether reductions at the depot level will be sustained and passed through the distribution chain.

Market observers are therefore expected to continue monitoring Dangote’s LPG pricing decisions and their impact on competing suppliers and retail prices.

Any sustained reduction could provide relief for households while encouraging more Nigerians to switch to cleaner cooking fuels.

The development also highlights the growing influence of domestic refining capacity on energy prices and supply conditions in Nigeria.