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Marketers kick against Dangote’s plan to crash price of cooking gas

Steven Atogi by Steven Atogi
July 16, 2025
in Economy, National
Reading Time: 2 mins read
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Dangote Refinery Begins Distribution of Petrol Nationwide
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Alhaji Aliko Dangote, chairman of Dangote Group, has announced plans to reduce the price of cooking gas.

He promised to start direct sales of Liquefied Petroleum Gas (LPG) to consumers if prices remain unreasonably high.

Operators in the LPG sector, however, protested his plan, accusing him of attempting to monopolise the growing gas market.

During a recent refinery tour, Dangote said current gas prices are unaffordable for Nigerians who still depend on firewood.

He explained that the refinery now produces 2,000 tonnes of LPG daily and is expanding distribution capacity nationwide.

Speaking to the Lagos Business School CGEO Africa group, Dangote emphasized that LPG must be affordable for ordinary Nigerians.

He warned distributors that if they refuse to lower prices, he will sell gas directly to end consumers.

Umpire News previously reported Dangote’s plan to start direct petrol, diesel, and aviation fuel distribution by August 2025.

He has already procured 4,000 CNG-powered trucks to handle nationwide fuel and gas logistics and last-mile delivery.

Currently, LPG costs between N1,000 and N1,300 per kilogram, depending on location and vendor across Nigeria.

Dangote insists this cost must fall to encourage citizens to shift away from kerosene and firewood cooking methods.

However, industry experts remain concerned, arguing that Dangote’s entry threatens years of LPG sector development efforts.

Godwin Okoduwa of the Lagos Chamber of Commerce said market growth stemmed from collaboration, not monopolistic ambition.

He warned that Dangote must work with stakeholders who built the sector from 70,000 to 1.3 million tonnes.

Okoduwa emphasized collaboration will help Nigeria reach 5 million tonnes and improve per capita LPG consumption significantly.

He encouraged Dangote to invest in infrastructure in underserved areas like the Northeast instead of competing unfairly.

Bassey Essien of the LPG Marketers Association said selling gas directly to consumers at low prices is unrealistic.

He questioned whether Dangote’s refinery has sold petrol to ordinary Nigerians at cheaper prices as previously promised.

Steven Atogi

Steven Atogi

Steven Atogi is Editor-in-chief at Umpire News. Formerly Editor-in-chief at DreamsNG Magazine. A skilled editor, writer and researcher with over a decade experience in politics, economy, sports and entertainment news editing; feature writing, copywriting and digital news sourcing. He has published in traditional and new media across local and international media outlets. He is keen on public policy, politics, economy, and social justice themes.

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