Dangote Refinery and Depot Owners Implement New Cooking Gas Price Adjustments
The Dangote Refinery, alongside various depot owners across Nigeria, has officially increased the prices of Liquefied Petroleum Gas (LPG), commonly known as cooking gas. This significant adjustment, which took effect on March 17, 2026, reflects ongoing volatility in global energy markets and rising production costs that are impacting domestic consumers.
Details of the Price Increase and Market Comparisons
The Dangote Refinery has raised its gantry price for cooking gas from the previous rate of N760 per kilogram to N800 per kilogram. This change represents a clear response to escalating international crude oil prices, which have directly driven up feedstock and refining expenses. Market analysts emphasize that this adjustment is not isolated but part of a broader trend affecting energy commodities worldwide.
Despite this increase, data collected from LPG depots in Lagos as of March 18, 2026, reveals that Dangote's revised rate remains lower than those of other major suppliers. Key depot prices include:
- Ardova – N900/kg
- Navgas – N890/kg
- PPMC – N895/kg
- A.A. Rano – N885/kg
This pricing disparity highlights Dangote Refinery's competitive positioning in the market, even as overall costs climb. Marketers affiliated with the refinery have already begun adjusting their retail prices, with current checks showing sales at approximately N830 per kilogram, incorporating additional distribution costs and profit margins.
Global Factors Driving Local Price Hikes
Analysts point to several international developments as primary drivers behind the upward pressure on cooking gas prices. Rising crude oil benchmarks have increased the cost of propane and butane, essential components in LPG production. Furthermore, escalating tensions in the Middle East have introduced new risks to global energy security.
Recent reports indicate that a major liquefied natural gas facility in Qatar was struck in a missile attack, raising concerns about potential disruptions to global gas supply. Iran carried out this strike in retaliation for attacks on its own energy infrastructure, highlighting how geopolitical conflicts can directly impact energy markets. Qatar is a critical exporter of liquefied natural gas, and any prolonged outage could tighten global supply, further pushing up energy prices.
Implications for Nigerian Consumers and Market Outlook
The latest price adjustments underscore the strong link between Nigeria's LPG pricing and global oil and gas dynamics. Households and businesses that rely heavily on cooking gas for daily activities are likely to feel the pinch of these increases. Analysts predict that if global supply disruptions and elevated crude oil prices persist, upward pressure on cooking gas prices may continue in the near term.
This situation also highlights the broader challenges facing Nigeria's energy sector, including the need for policies that enhance domestic refining capacity and stabilize fuel markets. As global events ripple through local economies, stakeholders are urged to monitor developments closely and adapt to the evolving energy landscape.
In summary, the Dangote Refinery's price increase to N800 per kilogram, coupled with higher depot rates, reflects a complex interplay of global economic and geopolitical factors. While Dangote remains a competitive player, the overall market indicates sustained pressure on cooking gas prices, driven by international crude oil trends and supply chain uncertainties.
