Nigerian households grappling with the rising cost of living may finally have cause for optimism as cooking gas prices have started to decline significantly across the country. This positive development follows a major price reduction by the Dangote Refinery, which has slashed the depot price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, by N170 per kilogram. Several depot operators have also reduced their rates, raising expectations of lower retail prices for millions of consumers.
Dangote Leads the Price Crash
Latest market data monitored by Legit.ng from PetroleumPriceNG shows that the Dangote Refinery cut its LPG depot price from N1,400 per kilogram to N1,230, representing a sharp 12.14% decline. This price reduction is one of the largest single decreases recorded in recent months and is expected to have a ripple effect across the country's cooking gas market. Industry observers note that the refinery's decision is already reshaping market prices, forcing other depot owners to adjust their rates downward to remain competitive.
Other Depots Join the Downward Trend
The impact of Dangote's move was quickly felt across major LPG depots in Lagos. Rain Oil reduced its cooking gas price by N20 to N1,330 per kilogram, while NIPCO adjusted its rate to N1,380 per kilogram. Techno Oil also lowered its price to N1,385 per kilogram. These fresh reductions are expected to ease pressure on retailers and, ultimately, consumers who have endured months of soaring cooking gas prices.
Why Prices Are Falling
Experts attribute the latest decline to falling international crude oil prices, which have dropped following easing geopolitical tensions in the Middle East. The market received a boost after the United States reached a crucial agreement with Iran, paving the way for the reopening of the Strait of Hormuz, one of the world's most important oil shipping routes. This development has improved market sentiment and reduced fears of supply disruptions, leading to lower energy prices globally.
Hope for Even Lower Prices
For many Nigerians, the decline could not have come at a better time. In recent months, cooking gas prices surged to as high as N2,500 per kilogram in some locations, forcing many households to cut consumption or switch to alternative cooking fuels. Marketers have previously projected that LPG prices could drop further to around N900 per kilogram before the end of the year if supply improves and logistics bottlenecks are addressed. Industry players have long blamed high prices on storage limitations, transportation costs, and supply chain challenges. With Dangote and other depots now cutting prices aggressively, consumers are hopeful that the reductions will soon reflect at retail outlets nationwide, bringing much-needed relief to millions of homes struggling with high living costs.
Retail Price of Cooking Gas Changes
Legit.ng earlier reported that Nigeria's cooking gas market is facing renewed pressure as retail prices fluctuate across the country, despite the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reporting that the nation has an average LPG stock sufficiency of 11 days. The latest figures, reviewed by Petroleumprice.ng from the NMDPRA factsheet for May 2026, show that while supply remains available, growing demand and shortages at depots are beginning to strain the market. The report indicates that LPG has the lowest stock cover among Nigeria's major petroleum products.
