Dangote Slashes Cooking Gas Price to ₦760/kg — Exposes Marketers Over Price Fixing and Profiteering

The Dangote Refinery has reportedly slashed the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, to ₦760 per kilogram, exposing what it calls “price fixing and profiteering” by marketers.¹

This move follows a recent period of significant price hikes across Nigeria, with some reports indicating prices had soared as high as ₦3,200 per kilogram in certain areas due to supply disruptions caused by a strike at the refinery.²

Dangote’s Stance and Actions

• Price Reduction: The refinery has set its ex-depot price for cooking gas at ₦760/kg, a significant drop from previous prices and what other depots are charging. This move is aimed at making cooking gas more affordable for consumers.³
• Accusations of Profiteering: The company has accused marketers of prioritizing profits over public welfare, alleging that they refuse to sell at lower prices despite the availability of a cheaper product from the refinery.⁴
• Threat of Direct Sales: In July, Aliko Dangote had warned that he would begin direct sales to consumers if middlemen failed to bring prices down.⁵ This new price cut and public statement suggest the company is following through on its commitment to bypass distributors if necessary.⁶
• Broader Conflicts with Marketers: This recent development is part of a larger, ongoing conflict between Dangote and various marketers’ associations. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has accused the refinery of selling products at lower prices to international buyers, a claim the Dangote Group has strongly denied, arguing that some marketers are engaging in “round-tripping” and arbitrage to profit from the price difference.⁷

Context of the Nigerian LPG Market

• PENGASSAN Strike: A recent three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over the dismissal of Nigerian workers at the refinery temporarily disrupted the supply of gas, contributing to a sharp increase in prices.⁸
• Marketers’ Concerns: Some operators in the LPG market have expressed concerns that Dangote’s actions could lead to a monopoly, potentially stifling competition and the collaborative growth that has characterized the market in recent years.⁹
• Government Intervention: The Nigerian National Petroleum Company Limited (NNPC) has linked the recent price hike to the PENGASSAN strike and the actions of opportunistic retailers, assuring the public that prices would stabilize as supply chains return to normal.¹⁰