Alhaji Aliko Dangote, the President of the Dangote Group, has unveiled intentions to significantly lower the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
In a bold move, he also mentioned the possibility of selling directly to consumers if current distributors do not comply with his pricing strategy, igniting widespread concern among industry stakeholders.
During a recent tour of his refinery attended by local and foreign dignitaries, Dangote emphasized that the high cost of cooking gas is a burden for many Nigerians, who often resort to firewood for their cooking needs. He revealed that his refinery is currently producing 22,000 tonnes of LPG daily and is ramping up production to meet the burgeoning demand as the country shifts towards gas usage in cooking.
“The current price of LPG is not affordable for the average person,” Dangote stated. “We are working to bring down prices to make it more accessible.” He warned distributors that if they do not lower prices, he would take matters into his own hands by selling directly to consumers, facilitating a transition from traditional cooking methods to LPG.
The PUNCH reports that Dangote’s plans coincide with his upcoming initiative to distribute petrol, diesel, and aviation fuel directly to marketers nationwide, alongside the introduction of 4,000 CNG-powered buses for the operation.
As it stands, the price of cooking gas ranges between N1,000 and N1,300 per kilogram. Dangote aims to reduce this figure to enhance affordability for consumers.
However, the LPG sector’s players have voiced strong opposition to Dangote’s plans, branding them as attempts to monopolize the market. Godwin Okoduwa, the former Chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, articulated concerns about the potential for monopolistic practices arising from Dangote’s strategy.
The brewing conflict reflects a significant challenge in balancing market competition with the need for affordable energy sources, raising questions about the future dynamics of the LPG industry in Nigeria.
