Cooking Gas Price War: Dangote Vows Direct Sales to Consumers, Operators Cry Monopoly
Aliko Dangote, Africa’s richest man and President of the Dangote Group, has pledged to crash the cost of Liquefied Petroleum Gas (LPG) in Nigeria, warning that he may bypass current distributors and sell cooking gas directly to consumers if prices remain high.
The bold move, however, has stirred backlash from industry stakeholders who fear the billionaire’s intervention could lead to a monopoly in the LPG sector.
Speaking during a recent tour of his Lekki refinery with local and international business leaders, Dangote decried the rising cost of cooking gas, which currently sells between ₦1,000 and ₦1,300 per kilogram, making it unaffordable for many Nigerians.
“We are trying to bring down the price and make it cheaper. If the distributors are not ready to cooperate, we’ll go directly to the consumers,” Dangote said, stressing the need to move Nigerians away from cooking with firewood and kerosene.
According to him, the refinery currently produces about 2,000 tonnes of LPG per day, with capacity set to ramp up to 22,000 tonnes daily, making it one of the largest producers in Africa.
Dangote also reiterated plans to start nationwide distribution of petrol, diesel, and aviation fuel in August and revealed that 4,000 CNG-powered buses have already been procured for efficient fuel delivery across Nigeria.
Operators Push Back: “This Is Monopolistic”
However, players in the LPG industry are not embracing the plan. Former Chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, described the move as a threat to market balance.
“It’s monopolistic. This market grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes by 2022 through collaboration—not domination,” Okoduwa said.
He urged Dangote to respect the existing market and pursue partnerships instead of pushing out established players who invested heavily in growing LPG adoption in Nigeria.
“He wouldn’t have built the refinery if the market didn’t exist. He should work to expand it, not destroy what others have built,” he added.
Okoduwa further advised that Dangote channel his resources into developing LPG infrastructure in underserved regions like the Northeast, which still records low LPG usage.
Gas Marketers Doubt Promise of Cheaper LPG
Echoing these concerns, Bassey Essien, Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), dismissed the promise of direct-to-consumer sales and significantly cheaper gas as unrealistic.
“Has the Dangote refinery been able to sell petrol directly to car owners at a cheap rate? The same applies here. It’s not feasible,” Essien argued.
While Dangote’s intention to make cooking gas more affordable resonates with ordinary Nigerians, industry leaders say the solution lies in collaboration, infrastructure expansion, and regulatory fairness—not a one-man revolution.
