Dangote Drops Bombshell: Cooking Gas Price To Fall — Marketers In Uproar

Aliko Dangote, President of the Dangote Group, has unveiled plans to slash the soaring cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, across Nigeria.
He warned that if current distributors fail to reduce prices, his refinery might bypass them and sell directly to consumers in a bid to make cooking gas more affordable.....KINDLY READ THE FULL STORY HERE▶

However, the announcement has sparked tension among existing market operators, many of whom view the move as a threat to the structure of the LPG sector and fear it could lead to market dominance by Dangote.

During a visit by members of Lagos Business School’s CGEO Africa to the Dangote Refinery in Lekki, the billionaire described the current price of cooking gas as unaffordable for the average Nigerian, many of whom still rely on firewood or kerosene.

Speaking candidly, Dangote said:

“The one that we didn’t write, which you must have seen, is LPG. Currently, we do LPG of about 2,000 tonnes per day. Nigeria is gradually transitioning to LPG, but it’s still expensive. We’re trying to bring down the price. If the distributors don’t bring it down, we’ll sell directly to consumers, so people can move from using firewood or kerosene to LPG.”

He added that the refinery now produces 22,000 tonnes of LPG daily, with plans to expand distribution within the local market.

But industry stakeholders are not entirely on board.
Former Chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, warned that Dangote’s move could jeopardize the collaborative framework that has built the LPG industry over the years.

He stated:

“This approach smacks of monopoly. The LPG industry grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022 — thanks to partnerships between the Federal Government, NLNG, and offtakers. Growth was achieved through collaboration, not dominance.”

Okoduwa emphasized that Nigeria’s per capita LPG consumption is still low — around 5 to 6kg — while countries like South Africa, Morocco, and Tunisia are doing double digits. He argued that the market could grow to over 5 million tonnes if collaborative efforts are sustained.

“Dangote should work with existing players instead of trying to override them. Many have invested heavily in infrastructure. He should respect that groundwork. Growth shouldn’t be a zero-sum game.”

He further advised Dangote to expand LPG infrastructure in underdeveloped areas like the Northeast, where LPG usage is still minimal, rather than compete aggressively in already developed regions.

Also reacting, Bassey Essien, Executive Secretary/CEO of the Nigerian Association of Liquefied Petroleum Gas Marketers, dismissed Dangote’s direct-to-consumer sales plan as impractical.

“It’s not realistic,” Essien said. “Look at petrol (PMS) — has his refinery sold it directly to you and me at a cheaper rate? So how feasible is this proposal with LPG?”