Fresh Cooking Gas Shortage Looms as Dangote Refinery Becomes Nigeria’s Sole LPG Supplier

Nigeria may be heading toward another round of cooking gas scarcity as retailers warn that supplies of Liquefied Petroleum Gas (LPG) are dwindling again — barely weeks after consumers began recovering from the last shortage that drove prices to record highs.

Retailers say the Dangote Petroleum Refinery has become the only major supplier of LPG to the domestic market, raising fears that any disruption to its operations could plunge the country back into a full-blown supply crisis.

In Abeokuta, Ogun State, a retailer identified simply as Adesola expressed concern over the situation, saying, “There is no significant improvement in LPG supply. We’re uncertain what the next few days or weeks will bring.”

Across the country, cooking gas prices now range between ₦1,200 and ₦1,500 per kilogram, depending on the location — a sharp rise from around ₦900/kg before the recent industrial dispute between the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) disrupted distribution.

The National Chairman of the LPG Retailers Branch of NUPENG, Ayobami Olarinoye, confirmed that current supplies from Dangote alone are insufficient to meet national demand.

> “As of now, only the Dangote Refinery is selling LPG. While we appreciate the effort to sustain local supply, the production level cannot meet domestic consumption,” he said.



Olarinoye explained that most depots have run out of stock, resulting in a widening supply gap. He noted that many marketers have stopped importing gas because of price disparities between Dangote’s refinery output and rates charged by middlemen.

> “Most depot owners have no gas to complement Dangote’s supply,” he added. “The government must address the pricing imbalance that’s discouraging other players from bringing in products.”



He recalled that LPG prices briefly dropped in October — from ₦2,000/kg to ₦1,400/kg — following the resolution of the PENGASSAN strike, but they have failed to return to pre-crisis levels below ₦1,000/kg.

Olarinoye warned that prices could surge again if the refinery halts production for maintenance. “If Dangote doesn’t suspend operations, prices may remain stable. But any shutdown could change that quickly,” he cautioned.

Recent data from Petroleumprice.ng showed that Dangote’s LPG price rose to ₦955/kg on Monday, compared to ₦920/kg at 11PLC and Navgas.

However, officials at the Dangote Refinery denied allegations of overpricing, insisting that retail rates are beyond the company’s control.

> “Marketers lift LPG from us at ₦715,000 per metric tonne — about ₦715/kg,” an official said. “We don’t regulate retail prices. That’s the responsibility of the Nigerian Midstream and Downstream Petroleum Regulatory Authority under the Petroleum Industry Act.”



Last month, Olarinoye revealed that Dangote sold LPG to off-takers at ₦15.8 million per 20,000 metric tonnes, who later resold it between ₦18.4 million and ₦18.5 million, further widening the price gap faced by consumers.

In response to the mounting crisis, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, vowed to sanction marketers found hoarding gas or exploiting consumers through excessive price hikes.

His intervention follows weeks of public outcry as gas prices doubled nationwide despite the end of the PENGASSAN strike.

Industry analysts have expressed concern that Nigeria’s heavy reliance on a single domestic supplier poses a long-term threat to energy stability. They warn that unless government policies encourage more players and investment in the LPG market, recurring shortages will continue to strain households and small businesses.

For now, Nigerians are bracing for uncertainty — and possibly another surge in prices — as supply tightens and the market closely watches the next move from the Dangote Refinery.