The Dangote Refinery has once again reduced the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, to ₦760 per kilogram, the second price cut in less than a month.
The refinery had previously lowered its ex-depot price from ₦850 to ₦810 per kilogram before this latest downward adjustment. The move comes as households and small businesses continue to struggle with rising living costs and inflationary pressure across the country.
Competitive Market Gap Narrows
Compared with other major suppliers, Dangote’s price stands significantly lower. Matrix Energy and Ardova Plc currently sell LPG at ₦920 per kilogram, while A.Y.M Shafa and NIPCO Gas offer the product at ₦910 per kilogram.
Stockgap Depot, one of the largest players in the segment, maintains a higher rate of about ₦950 per kilogram.
The price differential — ranging between ₦150 and ₦190 per kilogram — underscores Dangote’s growing market leverage and its potential to influence price movements across Nigeria’s downstream gas value chain.
Analysts See Strategic Price Reset
Industry experts describe the latest adjustment as a deliberate market intervention designed to pressure competing depots into reducing prices and discouraging speculative mark-ups that have long distorted Nigeria’s LPG market.
“Dangote’s consistent price moderation reflects a strategic effort to inject competition, improve affordability, and enhance supply efficiency in a sector previously dominated by import-linked volatility,” said an energy analyst in Lagos.
According to analysts, the refinery’s move could reshape market dynamics, stabilise supply, and drive broader adoption of gas as an affordable and cleaner household energy source.
Relief for Consumers Amid Inflation
The latest reduction offers hope to millions of Nigerian households facing surging cooking gas prices. In some parts of Lagos, the retail price had risen to between ₦1,800 and ₦2,500 per kilogram due to recent supply disruptions and speculative trading.
With the new pricing from Dangote, dealers are expected to adjust retail rates downward in the coming weeks, especially in the South-West, where the refinery’s distribution network is expanding.
“If this trend continues, we could see average retail prices fall by up to 20 percent before year-end,” another analyst projected.
Supporting Clean-Energy Transition
The refinery’s decision aligns with Nigeria’s broader clean-energy and import-substitution agenda, which aims to reduce reliance on imported LPG and accelerate the shift from biomass to cleaner alternatives.
By supplying cheaper gas, Dangote is helping to reinforce the objectives of the federal government’s ‘Decade of Gas’ initiative, which seeks to expand domestic gas utilisation, cut emissions, and boost industrial productivity.
Policy Alignment and Sector Impact
The move also complements the efforts of the Nigerian Liquefied Natural Gas (NLNG), which in recent years has dedicated 100 percent of its butane and propane output to the local market to improve availability and price stability.
Economists believe that with Dangote’s refinery now operational and steadily expanding output, Nigeria could significantly reduce LPG imports — improving the balance of payments while ensuring sustainable energy access for households and small enterprises.
Outlook
If sustained, Dangote’s pricing strategy could mark a turning point for Nigeria’s downstream gas industry. Analysts say it will not only force transparency into domestic pricing but also support inflation control and enhance purchasing power across the economy.
As distribution widens and supply stabilises, the refinery’s influence on market equilibrium is expected to grow, potentially transforming the structure of Nigeria’s energy retail system and strengthening the country’s transition toward clean, affordable domestic fuel.
