NALPGAM supports Dangote’s move to drastically reduce cooking gas prices

In a significant endorsement of private-sector intervention, the National LPG Marketers Association of Nigeria (NALPGAM) has thrown its full weight behind Dangote Petroleum Refinery’s plan to substantially reduce cooking gas prices for consumers across the country. The move has been hailed as a bold step toward improving energy affordability, boosting adoption of cleaner cooking fuels, and easing inflationary pressure on households.

NALPGAM’s national leadership praised the Dangote Group’s decision as strategic, timely, and likely to revitalize the domestic LPG market. At its weekly policy meeting in Abuja, the association’s President and other executive members emphasized that lower prices could stimulate volume growth, broaden market penetration, and deliver widespread socioeconomic benefits.

According to the association, high cylinder refill costs have long served as a barrier to switching from traditional solid fuels to LPG. Despite being cleaner and more efficient, LPG remains out of reach for millions of low-income households, primarily due to prohibitively steep pricing. This has contributed to persistent dependence on wood charcoal and kerosene, with associated health and environmental hazards.

NALPGAM leadership therefore regards Dangote’s initiative as a game-changer. It added that lower pricing on the most dominant downstream brand could reorganize market dynamics, encouraging competitors to follow suit and helping to embed LPG more firmly in Nigeria’s energy mix.

Business analysts expect multiple downstream impacts. Cheaper LPG is likely to promote new demand across urban and rural communities alike, as households see clear cost savings compared to charcoal and firewood. As cooking fuels take market share, retailers and marketers—including smaller cooperative vendors—stand to benefit from greater turnover and widened distribution networks.

This potential expansion of consumer access aligns with government environmental and public health goals. Household air pollution is known to contribute significantly to respiratory illness and untimely deaths, particularly among women and children in rural households. Broader LPG adoption would therefore support national efforts to reduce pollution exposure and ease demands on public healthcare systems.

Economists also note the connection between domestic energy pricing and inflation. Food producers, restaurants, and small eateries often cite cooking fuel as a major overhead. Notably, households also face pressure on budgets as higher food and energy costs compound living expenses. Lowering LPG prices could therefore produce rippling effects—reducing input costs in restaurants, enhancing agricultural food processing, and tempering upward pressure on consumer prices.

Even as NALPGAM welcomes the initiative, it urges systemic support to solidify its impact. The association advocates for regulatory transparency, consistent gas supply, and infrastructure investment along the LPG distribution chain. Marketers and dealers require prompt distribution, reliable cylinder import supplies, and improved storage capabilities. Without these, artificially lowered prices risk leading to shortages or operational losses.

On that note, NALPGAM called on government agencies—including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Standards Organisation of Nigeria (SON), and Department of Petroleum Resources (DPR)—to collaborate with private actors in ensuring compliance and supply chain integrity. Together, they said, efforts should include improving quality standards, eliminating substandard cylinder circulation, and safeguarding consumer confidence.

Dangote Petroleum Refinery has not publicly announced exact price levels but analysts suggest discounts could lower retail cylinder refill costs by as much as 20 to 30 percent. They anticipate this would bring a 12.5 kg cylinder—previously costing around ₦8,500—to as low as ₦6,000–₦7,000 in certain regions, depending on supply logistics and dealer margins.

Should this prove accurate, the move would align with global best-practice LPG pricing strategies, which aim for cost-reflectiveness without inhibiting demand growth. Dangote’s volume-centric outlook—focused on scaling domestic LPG use—would rely on increased sales to recover margins rather than premium pricing.

However, broad-based adoption remains contingent on several factors. Vehicles reliant on LPG are still rare, refilling station networks are uneven, and public awareness about LPG safety and benefits remains low in some communities. Policymakers are expected to pursue complementary action, such as supporting public information campaigns, offering micro-credit for cylinder purchase, and providing subsidies for low-income households during initial transition periods.

Environmental advocates, though celebrating lower prices, caution against unintended consequences. Without proper regulations, there is potential for cylinder hoarding or smuggling, which could enflame illicit LPG handling or compromise safety. They say quality assurance, cylinder labeling, and crowd-sourced reporting through regulatory apps should form part of any rollout plan.

NALPGAM addressed these points by announcing its own plan to expand dealer training on safety protocols, cylinder maintenance, and customer education. The association said it will partner with local governments and health authorities to hold roadshows demonstrating correct LPG use and injury prevention methods.

Meanwhile, industry observers anticipate important spill-overs for LNG consumption in cooking, energy poverty gaps, and broader industrial fuel usage. As industrial firms also shift to gas-based generators, refiners with ready bulk LPG supply could eventually scale to other sectors, paving the way for integrated gas policy solutions.

If Dangote’s price adjustment successfully drives up LPG consumption, Nigeria could see a surge in LPG usage rates—from the current approximately 7 kg per capita annually to nearer levels seen in middle-income peers—helping meet Sustainable Development Goals on clean energy access.

The NALPGAM leadership stressed that coordination was essential: “We cannot allow this opportunity to slip into history as a headline without follow-through.” The association urged refinery, agency, marketer, and financial actors to form a joint working group to track price trends, supply volumes, and consumer uptake nationally.

As Nigeria nears its 2025 presidential and gubernatorial elections, the timing of LPG price relief may also have political resonance. Consumers accustomed to high energy costs might view the development as immediate relief during election cycles. However, market professionals clarified that LPG pricing should be anchored in sustainable policy, not electoral cycles.

In conclusion, NALPGAM’s backing signals firm industry endorsement of Dangote’s pricing pivot. But expanding access, ensuring safety, and sustaining supply will determine whether this becomes a watershed moment for Nigeria’s energy transition—or a temporary adjustment. If coordination across government, regulatory, and private actors succeeds, the measure could mark a dramatic shift toward affordable, cleaner cooking fuels for millions nationwide.