In a move that could redefine Nigeria’s domestic gas market, Dangote Petroleum Refinery has again cut its Liquefied Petroleum Gas (LPG) price dropping from ₦810 per kilogramme on Wednesday to ₦760/kg today, according to data from Petroleumprice.ng.
Dangote Prices vs Depot Prices
Dangote Refinery currently sells Liquefied Petroleum Gas (LPG) at ₦760 per kilogramme, making it the lowest-priced supplier in the domestic market. In contrast, Matrix and Ardova depots each sell at ₦920/kg, while A.Y.M Shafa and NIPCO list their prices at ₦910/kg. Stockgap Depot remains the highest at ₦950/kg.
The price difference between Dangote’s ₦760/kg and the others ranging from ₦910 to ₦950/kg represents a gap of ₦150 to ₦190 per kilogramme, highlighting the refinery’s strategic bid to reset the market and pressure competitors to adjust downward.
Industry analysts say this pricing spread reflects a deliberate effort by Dangote Refinery to influence depot pricing discipline and counter speculative markups that have long distorted the LPG value chain.
This latest downward adjustment, coming just days after the refinery resumed operations from a short maintenance shutdown, signals a strategic push to stabilise supply and cool off surging market prices that have rattled households across Lagos and beyond.
The Dangote Factor: Maintenance, Resumption and Price Shock
Industry insiders confirm that the refinery recently concluded a scheduled maintenance exercise that temporarily halted loading at its LPG facilities. That brief pause coinciding with the PENGASSAN strike deepened supply disruptions across the South-West, where most retailers rely on Lagos depots for restocking.
Once maintenance was completed midweek, Dangote resumed with an initial LPG price of ₦810/kg, quickly adjusting it down to ₦760/kg within days as part of its market-calming strategy. The reduction, analysts say, is not just about affordability but about asserting control over a fragmented downstream chain long dominated by speculative pricing and middlemen hoarding.
“The maintenance was necessary for operational optimisation,” said an industry analyst familiar with the refinery’s processes. “Dangote’s post-maintenance price cut shows intent, not only to restore volumes but to realign pricing discipline in the domestic LPG market.”
Lagos: The Epicentre of the Crisis
Lagos has borne the brunt of the scarcity, with residents enduring record-high prices and endless queues at filling stations. The recent PENGASSAN strike paralysed vessel berthing and product loading at Apapa and Ijora terminals, worsening stock depletion across major depots.
Even after the strike ended on October 1, many stations remained dry. Independent retailers quickly raised prices from ₦1,000/kg to between ₦2,800 and ₦3,500/kg, while those with limited stock rationed sales to priority customers.
At Mobil, NIPCO, and NNPCL stations, prices range between ₦1,100 and ₦1,300/kg, but only a handful of pumps are active, forcing hundreds of consumers to queue for hours. In Surulere, Festac, and Ijeshatedo, residents describe the hunt for gas as “hopeless,” with 12.5kg cylinders now selling between ₦22,500 and ₦43,750.
From Depot to Retailers: A Tale of Distortion
Fresh depot analytics from Petroleumprice.ng reveal how the price chain widened beyond reason. While Dangote now leads with ₦760/kg, other depots such as Matrix Warri, Ardova, and NIPCO maintain prices around ₦910–₦920/kg, and Stockgap lists as high as ₦950/kg.
Despite this moderate wholesale structure, retailers continue to charge triple these rates a distortion industry experts blame on transport bottlenecks, hoarding, and speculative trading.
“The refinery’s resumption and price slash expose how artificial markups have distorted Nigeria’s LPG value chain,” noted downstream analyst Ikechukwu Nwosu. “Dangote is effectively challenging the middlemen, forcing them to justify why a ₦760/kg product sells for ₦3,500/kg in Lagos.”
NNPCL and Market Response
The Nigerian National Petroleum Company Limited (NNPCL) has applauded Dangote’s price cut, describing it as a “stabilising move” that aligns with ongoing efforts to normalise supply. NNPCL officials, however, warned that the market may take “a few more days” to feel the full impact, given vessel delays, lingering port congestion, and depot loading backlogs caused by the recent strike.
In a statement, NNPCL reaffirmed its commitment to coordinating supply alongside Dangote to curb retail inflation and discourage speculative stockpiling.
Public Reaction: Long Queues and High Tempers
On X (formerly Twitter), Lagosians have voiced deep frustration:
- “₦1,200/kg at Mobil but only one pump. I’ve queued for three hours!” lamented one Festac resident.
- Another wrote, “₦3,200/kg in Surulere and you still might not get gas. This is madness.”
- “Charcoal and firewood are back in 2025,” another joked bitterly, capturing the mood of desperation spreading across the city.
For small businesses and food vendors, the situation is dire. Many have scaled down production or temporarily closed shop, citing unsustainable operating costs.
Analysts: Dangote Refinery A Turning Point for the LPG Market
Experts believe the refinery’s decision to resume swiftly after maintenance and push prices downward could reshape Nigeria’s LPG market dynamics. It marks a shift from reactive market pricing to proactive stabilisation led by domestic producers rather than offshore suppliers.
“Dangote’s consistent pricing adjustments show a willingness to influence the market in consumers’ favour,” said energy economist Dr. Nnamdi Okoye. “If the refinery sustains production and widens distribution channels, Lagos could see real price correction within days.”
They, however, warn that sustained relief depends on logistics improvements, transparency in distribution, and tighter regulation of retail margins.
The Road Ahead
While Dangote’s post-maintenance comeback has restored some optimism, the Lagos market remains volatile. Prices could ease gradually as more depots receive deliveries, but experts say it will take at least a weaek for visible impact at retail levels.
For now, Dangote’s ₦760/kg offer is a ray of hope in a market plagued by chaos a reminder that Nigeria’s path to affordable energy lies in efficient local refining, not just supply abundance.
Until normalcy returns, Lagos kitchens will keep burning anxiously waiting for the refinery’s bold cuts to trickle down to their stoves.
