As the people groan over unprecedented hike in price of Liquefied Petroleum Gas (LPG), also known as cooking gas, the Dangote Petroleum Refinery has cut its ex-depot price from ₦860 to ₦760 per kilogram. This reflects a ₦50 reduction or 6.17 per cent drop from the previous price. The price is considered the lowest in …
Dangote Refinery Slashes ex-Depot Price of Cooking Gas to ₦760/kg
As the people groan over unprecedented hike in price of Liquefied Petroleum Gas (LPG), also known as cooking gas, the Dangote Petroleum Refinery has cut its ex-depot price from ₦860 to ₦760 per kilogram.
This reflects a ₦50 reduction or 6.17 per cent drop from the previous price.
The price is considered the lowest in the country as competing depots in the local market currently sell between ₦910 and ₦950 per kg, creating a price gap of ₦190.
Matrix and Ardova depots sell at ₦920 per kilogram, while A.Y.M Shafa and NIPCO set their LPG prices at ₦910 per kg. However, Stockgap depot sells at ₦950 per kilogram, being the highest depot price in the country currently.
Dangote’s price of ₦760/kg for cooking gas sets the stage for fresh competition among suppliers in the domestic market.
Industry experts say the price difference is part of a strategic move by Dangote Refinery to regulate pricing at depots and tackle arbitrary price hikes that have historically disrupted the LPG market.
READ ALSO: Cooking Gas Price Rises to ₦22,500/12.5kg in Lagos after PENGASSAN Strike
Reacting to the development, an economist and energy expert, Mr Kelvin Emmanuel raised concerns about wide profit margins with which LPG marketers are selling, noting that the middlemen are not allowing consumers enjoy the price reduction.
According to him, while Dangote Refinery is selling cooking gas at ₦760 per kg, marketers are selling at over ₦1,000 per kg “because of collusion in fixing the prices.”
“The middlemen are making even more money than the commercial refiner who is purchasing Nigerian crude at a premium. If Dangote goes to China to buy LPG trucks to do forward integration to the last mile, they will start shouting monopoly,” he added in a post on his X handle.
Pinnacle Daily had reported that the price of cooking gas jumped to an all-time high last week following the disruption in gas supply caused by the nationwide strike embarked on by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) dispute with the Dangote Refinery management.
The price of LPG went as high as ₦3,000 per kilogram under one week, leaving trails of lamentations by residents in Lagos who queued at various depots to get the product.
The Group Chief Executive of the Nigerian National Petroleum Company Limited, Mr Bayo Ojulari, confirmed that the sudden surge in cooking gas price was due to the PENGASSAN stike which has been suspended. Ojulari, who spoke with State House Correspondents after a meeting with President Bola Tinubu on Sunday, described the price increase as “artificial”, adding that things would return to normal as the distribution chain which was disrupted is being restored.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
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