Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Dangote Petroleum Refinery has once again shaken up Nigeria's cooking gas market, reducing its ex-depot price of Liquefied Petroleum Gas (LPG) to ₦950 per kilogramme, a move that is expected to provide some relief for households and businesses grappling with high energy costs. The price cut, which took effect on August 14, 2026, marks a ₦10 reduction from the refinery's previous rate and places Dangote among the lowest-priced major depots in the country. The development comes amid continuing concerns over the cost of cooking gas, which has placed significant pressure on households and small businesses that depend on LPG for daily cooking needs.
According to data from PetroleumPriceNG, Dangote's new ex-depot price of ₦950 per kilogramme represents a 1.04 per cent decline from its previous rate. The refinery's pricing strategy has been viewed as part of a broader attempt to increase domestic supply and introduce greater competition into the cooking gas market. Industry observers have noted that Dangote's intervention has increasingly become an important factor in the domestic LPG market, with its pricing decisions capable of influencing competing suppliers and downstream retailers.
Following Dangote's lead, 11 Plc also slashed its LPG rate by ₦20, representing a 2 per cent decline, bringing its price to ₦980 per kilogramme. However, not all depots recorded reductions. Rainoil Lagos maintained its rate at ₦990 per kilogramme, unchanged from its previous level, while PPMC also held steady at ₦980 per kilogramme. This mixed movement in the LPG market suggests that while some suppliers are passing on the benefits of improved domestic supply, others are choosing to maintain their margins.
The price reduction at the depot level comes after months of volatility in the cooking gas market. In June 2026, Dangote had reduced its LPG depot price from N1,400 to N1,230 per kilogramme, representing a sharp 12.14 per cent decline. The refinery had previously lowered its ex-depot price from ₦810 to ₦760 per kilogramme in October 2025, offering significant relief to households facing skyrocketing costs. During that period, competing depots were selling at significantly higher rates, with Stockgap Depot topping the market at ₦950 per kilogramme.
The latest price development comes amid ongoing concerns over the cost of cooking gas, which has placed pressure on households and small businesses. For consumers, the key concern remains whether reductions at the depot level will be sustained and passed through the distribution chain. Market observers are expected to continue monitoring Dangote's LPG pricing decisions and their impact on competing suppliers and retail prices, as any sustained reduction could provide relief for households while encouraging more Nigerians to switch to cleaner cooking fuels.
The Dangote refinery has emerged as a major player in Nigeria's downstream petroleum sector since commencing operations, with its domestic production expected to reduce dependence on imported refined petroleum products and support local supply. The refinery's pricing strategy is significant for Nigerian households because LPG remains one of the major alternatives to firewood, kerosene and other traditional cooking fuels. Lower depot prices can potentially translate into reduced retail prices, although the final amount paid by consumers is also influenced by transportation costs, distribution margins, storage expenses and local market conditions.
The development also highlights the growing influence of domestic refining capacity on energy prices and supply conditions in Nigeria. As the market adjusts to the new pricing environment, the key question remains whether the latest depot reductions will translate into cheaper retail cooking gas prices in the coming days. For now, Dangote's ₦950 per kilogramme rate positions it as the cheapest among the four clearly visible depots, while Rainoil Lagos records the highest at ₦990 per kilogramme.
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