KEY POINTS
- Dangote cuts LPG price to N950/kg.
- Major depots reduce prices to N955–N960/kg.
- Retail cooking gas remains around N1,300–N1,500/kg.
Nigeria’s cooking gas market is experiencing another round of price reductions after the Dangote Refinery and major LPG depot operators lowered their selling prices.
The Dangote Refinery reduced its LPG gantry price by N30 to N950 per kilogram, according to a market survey by Daily Post.
The reduction is expected to ease pressure on consumers, particularly households that have faced high cooking gas prices in recent months.
Several major depot operators and marketers also responded by lowering their ex-depot prices.
11PLC, formerly Mobil, as well as NAVGAS, Ranoil and PPMC, reduced their prices to between N955 and N960 per kilogram. Their reductions ranged from N15 to N30 per kilogram.
The cuts could encourage further reductions across the retail market if the lower wholesale prices are passed on to consumers.
Retail prices remain above N1,300
Despite the latest reductions at the refinery and depot levels, retail LPG prices remain significantly higher.
Cooking gas at filling stations operated by Ranoil, NNPC and Shafa was selling between N1,300 and N1,450 per kilogram, while some retailers in Abuja and surrounding areas continued to charge about N1,500 per kilogram.
This means consumers may not immediately benefit fully from the latest wholesale price reductions. The price reduction comes amid a significant increase in Nigeria’s LPG imports.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that cooking gas imports surged by 1,400 per cent in June.
The combination of increased imports, local refinery production and lower depot prices could improve supply and create stronger competition in the domestic LPG market.
If marketers continue to adjust their retail prices in response to the lower refinery and depot costs, consumers could see cooking gas prices decline further in the coming weeks.
However, the gap between wholesale and retail prices remains substantial, meaning transportation, distribution and other operating costs will continue to influence what households ultimately pay.
