The Dangote Petroleum Refinery has emerged as the primary supplier of LPG to the local market, raising concerns that any disruption in its operations could lead to another nationwide shortage. In Abeokuta, Ogun State, a retailer expressed uncertainty about gas availability, stating there has been no major improvement in supply.
Currently, cooking gas prices range between ₦1,200 and ₦1,500 per kilogram across Nigeria, a significant rise from around ₦900/kg before recent supply disruptions caused by an industrial dispute at the Dangote Refinery.
The National Chairman of the Liquefied Petroleum Gas Retailers branch confirmed that the refinery’s current output cannot meet domestic demand. Most depots have exhausted their stock, creating a supply gap that discourages other marketers from importing due to price disparities.
While LPG prices dropped slightly in October after the resolution of the industrial dispute, they remain above pre-crisis levels. Prices could spike again if refinery operations are halted for maintenance.
Recent data shows Dangote’s LPG price at ₦955/kg, higher than competitors. Refinery officials deny overpricing, stating retail prices are determined by market forces and regulatory frameworks, not the company.
Last month, off-takers resold Dangote’s LPG at significantly higher rates, widening margins for retailers and consumers. The Minister of State for Petroleum Resources (Gas) has vowed to address hoarding and price exploitation.
Industry analysts warn that Nigeria’s reliance on a single major supplier threatens energy stability. Without policy support to diversify the market, periodic shortages may persist, burdening households and businesses.
Consumers now face uncertainty as supply tightens, with fears of further price hikes if market conditions worsen.