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Dangote Plans Cooking Gas Price Slash, Marketers Warn Against Monopoly
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Marketers warn the move could threaten industry balance and competition.
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Experts urge collaboration over market domination to ensure long-term growth.
President of the Dangote Group, Aliko Dangote, has announced plans to slash the rising cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, amid growing concerns over affordability for Nigerians.
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EKO HOT BLOG reports that speaking during a visit by Lagos Business School’s CGEO Africa to the Dangote Refinery in Lekki, Dangote described the current market price of LPG as unaffordable for many households. He revealed the refinery produces 22,000 tonnes of LPG daily and intends to inject more into the local market.
“We currently produce about 2,000 tonnes of LPG per day. It’s expensive now, but we’re working to reduce the cost. If distributors don’t comply, we’ll sell directly to consumers so more Nigerians can move away from firewood and kerosene,” Dangote said.
However, the plan has sparked tension among existing marketers, who fear the move may tilt the market toward monopoly.
Godwin Okoduwa, former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, warned that bypassing the existing distribution system could destabilise years of sector-wide progress.
He noted that the industry grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes by 2022 through collaboration between government, NLNG, and offtakers. “Growth like this comes from cooperation, not domination,” he said.
Okoduwa urged Dangote to pursue a collaborative approach to scale the LPG market from its current 5kg per capita to match countries like Morocco and South Africa, which record double-digit levels.
He added, “Dangote should not frustrate existing players. The LPG pie is big enough for all. Let it be growth through partnership, not displacement.”
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