Nigerian households are bracing for increased cooking expenses following a significant price adjustment from Dangote Petroleum Refinery. The company has announced an N85 per kilogram increase for Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
New Pricing Structure and Market Impact
The ex-gantry price has moved from N715 per kilogram to N800 per kilogram, according to a Pro Formal Invoice obtained by Petroleumprice.ng. This revision, captured on November 14, 2025, represents the refinery's first major price adjustment this year.
Industry analysts point to multiple factors driving this increase, including rising domestic demand, ongoing market disruptions, and operational challenges at key production facilities. Supply constraints have created uneven pricing across the sector, with current depot rates varying significantly among major distributors.
Current Market Rates and Government Response
Market data reveals substantial price disparities among downstream operators. AA Rano currently sells at N925/kg, while Navgas and Ardova are priced at N920/kg and N915/kg respectively. These variations illustrate the uneven cost burden ultimately borne by consumers.
The Federal Government had previously linked recent cooking gas price spikes to industrial action at Dangote Refinery and maintenance activities at Nigeria LNG's Train 4 facility. In response to the current situation, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has intensified monitoring across LPG depots nationwide.
Despite operating in a deregulated market, the regulatory body is urging marketers to act responsibly and avoid exploiting the current situation. The authority's increased surveillance aims to ensure fair pricing practices throughout the distribution chain.
Industry Perspective and Future Outlook
Olatunbosun Oladapo, immediate past president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), described the current price volatility as temporary. He expressed confidence that prices would stabilize once supply conditions improve and market disruptions ease.
The new N800/kg ex-gantry price from Dangote Refinery will serve as a benchmark for distributors and retailers. However, industry analysts warn that logistical challenges and ongoing maintenance at other key facilities could maintain retail price volatility in the near term.
Currently, retail cooking gas prices average between N1,050 and N1,200 per kilogram across Nigeria. This places additional financial pressure on households already grappling with rising living costs.
In a related development, President Bola Ahmed Tinubu recently commissioned WAGL Energy Limited's 40,000 cubic meters LPG vessel, named MT Iyaloja (Lagos). This addition brings WAGL's fleet to five LPG carriers with a combined capacity of 162,000 cubic meters. While this expansion strengthens long-term LPG supply capabilities, the immediate challenge remains stabilizing retail prices for Nigerian consumers.
