By Esohe Aifuwa
Dangote’s Push for Cheaper Cooking Gas Sparks Industry Debate
The President of the Dangote Group, Aliko Dangote has unveiled plans to lower the cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, to make it more affordable for Nigerians.
He made this statement during a tour of his Lekki-based refinery, where he revealed that his facility produces 22,000 tonnes of LPG daily and is scaling up to meet growing demand, emphasizing the need to reduce prices to encourage a shift from firewood and kerosene to gas for cooking.
Dangote warned that if current distributors fail to align with his goal of slashing prices, his company would bypass them and sell directly to consumers. Currently, LPG costs between N1,000 and N1,300 per kilogram, a price he described as too high for ordinary Nigerians. “We’re working to bring the price down so people can move to cleaner, more affordable cooking gas,” he told a group from the Lagos Business School during the refinery tour.
Read more: https://punchng.com/marketers-protest-as-dangote-moves-to-crash-cooking-gas-price/
However, the plan has met resistance from LPG industry operators, who fear it could lead to a monopoly. Former chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, argued that the sector’s growth from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022 was driven by collaboration among stakeholders, including the government and private investors. “Growth comes from working together, not monopolizing the market,” Okoduwa said, urging Dangote to prioritize partnerships over competition.
Okoduwa suggested that Dangote focus on expanding LPG infrastructure in underserved regions like the Northeast, where consumption remains low. He also highlighted that Nigeria’s per capita LPG use is just 5-6 kilograms, far below countries like South Africa and Morocco, indicating room for market expansion through collective efforts.
More also, the executive secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, questioned the feasibility of Dangote’s plan, pointing to the refinery’s challenges in directly distributing petrol at lower prices. “Can they realistically sell gas directly to consumers at a cheaper rate?” Essien asked.
Dangote’s initiative comes alongside plans to distribute petrol, diesel, and aviation fuel directly to marketers starting in August, supported by 4,000 CNG-powered buses. While his push for affordability has stirred hope among consumers, industry players remain wary, calling for a balanced approach to ensure the LPG market continues to grow without stifling existing players.
Watch more: https://www.youtube.com/watch?v=dkf1TKkHMr4
