Dangote Refinery cuts cooking gas price to N935 per kg, N15 off in 24 hours

Dangote Refinery has reduced the price of liquefied petroleum gas, also known as cooking gas, from N950 to N935 per kilogram. This is the second price cut within 24 hours and brings the refinery's total LPG price reduction this month to N165 per kilogram.

The new price applies as the Lekki-based refinery expands its activities in the downstream petroleum market. It has also begun petrol deliveries to authorised dealers and extended its free logistics programme to four additional states, a move expected to ease distribution and cut transportation costs for some dealers.

Private depots react

The latest adjustment has triggered fresh price movements among major private depots. Some operators have reduced their rates as competition across the downstream market intensifies.

Data from PetroleumPriceNG shows NIPCO Lagos selling LPG at about N960 per kilogram, while Matrix is quoted at N1,030 per kilogram. PPMC is listed at about N955 per litre, reflecting varying prices across supply points.

The gap between depot and refinery prices could put further pressure on distributors and retailers to review their rates, especially in areas with relatively low transportation costs.

What this means for consumers

The cuts come at a time when Nigerian households continue to struggle with elevated living costs and the rising expense of essential cooking fuels. Cooking gas prices remain a major concern for families that have shifted away from other fuels.

Any sustained reduction in wholesale prices could provide some relief if retailers pass the savings through to consumers. However, the final pump price households pay will still depend on transportation costs, distribution margins, location and prevailing depot prices.

The latest LPG reduction also underscores growing competition in Nigeria's downstream petroleum sector, where refiners, depots and marketers are increasingly adjusting prices in response to changing market conditions.

For consumers, the key question is whether the latest refinery and depot cuts will translate into cheaper cooking gas at retail outlets nationwide, or whether distribution costs will absorb much of the reduction.

Earlier, Dangote Refinery and 11 Plc led a fresh downward movement at major depots, with Dangote selling LPG at N950 per kilogram, a N10 reduction or 1.04 per cent from its previous rate. That placed Dangote among the lowest-priced major depots in the market update.