Depots reduce cooking gas prices to match Dangote Refinery's N935 rate
By Aboki Forex —
Depot operators across Nigeria have cut their cooking gas prices to stay competitive after Dangote Refinery lowered its LPG rate to N935 per kilogram. The average depot price now stands at about N940 per kilogram, just N5 above Dangote's latest rate.
What depots are charging
Data from PetroleumPriceNG shows that NAVGAS sells LPG at about N950 per kilogram, while Ardova (AP) and PPMC are offering the product at approximately N940 per kilogram. AYM Shafa is the outlier, listed at N1,055 per kilogram, the only dealer in the data with a price above the N1,000 mark.
The narrowing gap between Dangote's price and depot rates follows the refinery's decision to reduce its Liquefied Petroleum Gas price to N935 per kilogram. Dangote Refinery, with a capacity of 700,000 barrels per day, has become a major force in Nigeria's downstream petroleum market, and its pricing is now influencing the wider LPG space.
Competition puts pressure on sellers
This is not the first cut from the refinery. In an earlier update, Dangote was selling LPG at N950 per kilogram, a reduction of N10 or 1.04 percent from its previous rate. That placed Dangote among the lowest-priced major depots captured in the market data.
The growing competition among major LPG suppliers is likely to keep pressure on dealers to review their prices. However, the price adjustment is unfolding against a challenging global backdrop, with crude oil prices climbing above $90 per barrel, according to Oilprice.com. That could increase costs across the energy supply chain.
What it means for households and businesses
For consumers, lower depot prices could eventually translate into lower retail prices, depending on transportation costs, distribution margins and local market conditions. Nigerians have faced elevated cooking gas costs amid broader increases in household expenses, so any reduction in LPG prices is significant.
The latest adjustments offer cautious optimism that stronger domestic supply and competition could help keep cooking gas prices from rising further.