Dangote Declares Price War on Cooking Gas Market, Marketers Push Back Against Monopoly Threat
🗓️ 16 July 2025
🖋️ Byline: IDNN Business Desk
Lagos, Nigeria – Aliko Dangote has ignited a firestorm in Nigeria’s domestic energy market after announcing his plan to crash cooking gas (LPG) prices and sell directly to consumers — a move that industry players fear could trigger a dangerous monopoly.
Speaking during a tour with foreign investors and local stakeholders at the Lekki Refinery Complex, Dangote said that the group now produces 2,000 metric tonnes of LPG daily and intends to ramp up output in the coming months.
“We believe LPG is too expensive for Nigerians. If marketers won’t reduce the price, we’ll go direct to the consumer,” he said.
Currently, cooking gas prices hover between ₦1,000 to ₦1,300 per kilogram, putting immense pressure on families who rely on the product as an alternative to kerosene and firewood.
Direct-to-Consumer Strategy Raises Red Flags
Dangote said his goal is to bring affordability and speed up the adoption of LPG across Nigeria, especially in underserved regions.
However, major gas marketers and sector stakeholders are sounding alarms.
“What Dangote is proposing amounts to market control,” warned Godwin Okoduwa, former chairman of the Lagos Chamber of Commerce LPG group.
He accused the billionaire of trying to undercut long-standing distributors and ride on infrastructure others built over two decades.
“This market grew from 70,000 tonnes in 2007 to over 1.3 million tonnes in 2022 — not by magic, but through public-private partnerships. Dangote is now stepping in to dominate,” he said.
Marketers Warn of Monopoly and Displacement
The Nigerian Association of LPG Marketers also weighed in, with executive secretary Bassey Essien describing Dangote’s plan as “unrealistic and disruptive.”
“Let him go to the Northeast, where LPG consumption is lowest, and develop infrastructure. Don’t crash the market in places others have spent years building.”
Essien questioned why Dangote hadn’t applied the same price-slashing energy to petrol or diesel, suggesting the move was strategic, not altruistic.
“He hasn’t cut PMS prices despite producing it. Why cooking gas? Because it’s easier to disrupt — and harder to regulate.”
Is This a Power Play or a Price Revolution?
While consumers may benefit from cheaper prices in the short term, experts warn the long-term risks of market dominance, supplier squeeze-outs, and stifled competition could lead to worse service delivery and higher prices once competitors are removed.
Dangote, however, insists the goal is to stimulate efficiency and lower costs — not to monopolise.
“We welcome competition. But we won’t watch Nigerians continue to suffer when we can fix it.”
What Comes Next?
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is expected to issue a policy advisory on LPG distribution following the controversy. Sources say the regulator may reaffirm equal-access pipeline rights and storage depot sharing rules to prevent vertical integration abuse.
Meanwhile, consumer rights groups have welcomed Dangote’s announcement and called for transparency in pricing across the supply chain.
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