Aliko Dangote’s Dangote Refinery plans to slash cooking gas prices by selling directly to consumers if distributors don’t comply. Here’s what’s happening .
Cooking gas currently costs between ₦1,000 and ₦1,300 per kilogram.Dangote Refinery produces 22,000 tonnes of LPG daily and aims to increase output to meet rising demand. If distributors don’t reduce prices, Dangote will sell cooking gas directly to consumers. Industry operators fear a monopoly, potentially driving out long-standing players who contributed to Nigeria’s LPG market growth from 70,000 tonnes in 2007 to over 1 million tonnes by 2022. Dangote’s direct-to-consumer model could lower gas prices for millions, pressure other distributors to reduce prices, and prompt regulatory bodies to revisit gas pricing frameworks.
Some experts, like Godwin Okoduwa, former Chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, suggest Dangote should focus on underserved areas like the Northeast, where LPG usage is low, rather than disrupting the existing market.
