Dangote Refinery has reduced the ex-depot price of its cooking gas, decreasing it from N810 per kilogram to N760 per kilogram.
This move is part of the refinery’s strategic effort to reshape the market and pressure competitors to lower their prices. The refinery’s price cut has made it the most affordable option in the local market, with its LPG rate significantly lower than its competitors.
The price difference is part of a strategic move by Dangote Refinery to regulate pricing at depots and combat unwarranted price increases that have historically disrupted the LPG market. “Dangote’s post-maintenance price cut shows intent, not only to restore volumes but to realign pricing discipline in the domestic LPG market,” an industry analyst said.
Dangote Refinery offers Liquefied Petroleum Gas (LPG) at a rate of N760 per kilogram, positioning it as the most affordable option in the local market. In comparison, Matrix and Ardova depots sell LPG at N920 per kilogram, while A.Y.M Shafa and NIPCO provide theirs at N910 per kilogram. Stockgap Depot charges the most, with a price of N950 per kilogram.
The price cut by Dangote Refinery is expected to have a significant impact on the domestic gas market. With Dangote’s rate at N760 per kilogram, other depots are under pressure to review their prices. Industry experts believe the move is part of a deliberate plan by the refinery to curb arbitrary price hikes that have long plagued Nigeria’s LPG supply chain and to ensure affordability for consumers.
The disparity in pricing, with Dangote’s rate at N760 per kilogram compared to others priced between N910 and N950 per kilogram, illustrates a difference of N150 to N190 per kilogram. This significant price difference underscores the refinery’s strategic effort to reshape the market and pressure competitors to lower their prices.
Dangote Refinery’s move to cut prices is seen as a strategic effort to gain market share and stabilize prices in the industry. The refinery’s decision to reduce prices has been hailed by industry experts, who believe it will help to make cooking gas more affordable for households nationwide.