Dangote Price Hike Drives Cooking Gas Costs Higher

The recent price hike by Dangote Petroleum Refinery has resulted in an increase in the cost of cooking gas in Nigeria, with retail prices now reaching N1,000 per kilogram. This adjustment follows an increase in the refinery's LPG ex-gate price from N760 to N825 per kilogram.

Damilola Owolabi Osinusi, the public secretary of the Nigerian Association of Liquefied Petroleum Gas, confirmed that consumers should expect further price increases nationwide. The surge in prices is linked to rising logistics costs, compounded by higher diesel prices and global crude oil price fluctuations.

The situation is exacerbated by the volatility of foreign exchange rates and infrastructural gaps in the domestic gas distribution network. The federal government has been promoting the adoption of LPG as part of its clean energy transition strategy, but ongoing price spikes threaten to hinder this initiative.

Stakeholders warn that unless there is a significant drop in crude oil prices, the upward trend in cooking gas prices may persist in the near term.