President of the Dangote Group, Alhaji Aliko Dangote, has unveiled plans to slash the cost of Liquefied Petroleum Gas (LPG), commonly called cooking gas. He also warned that if existing distributors fail to reduce prices, his company would begin selling directly to consumers. However, some industry stakeholders have opposed the move, accusing Dangote of attempting to monopolise the LPG market. They voiced their concerns on Monday, saying the plan could edge out smaller operators. During a recent refinery tour with local and foreign visitors, Dangote noted that the current price of cooking gas remains too high for many Nigerians who rely on firewood. He revealed that the refinery now produces about 22,000 tonnes of LPG daily and aims to increase supply to the Nigerian market as demand for gas grows. Addressing members of the Lagos Business School CGEO Africa at the Lekki refinery, Dangote said, “Right now, we’re producing around 2,000 tonnes of LPG per day. LPG use is growing in Nigeria, but it’s still too expensive. We’re working to make it cheaper.” He added, “If distributors refuse to lower prices, we will bypass them and sell directly to consumers so that more Nigerians can switch from firewood and kerosene to LPG.” It is worth noting that Dangote is also planning to start direct nationwide distribution of petrol, diesel, and aviation fuel from August, using 4,000 newly acquired CNG-powered buses. Currently, the price of cooking gas ranges between N1,000 and N1,300 per kilogramme. Dangote pledged to reduce this to make it more affordable. Despite the promise of lower prices, some operators are wary. Speaking to our correspondent, Godwin Okoduwa, former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, criticised the plan as monopolistic. Okoduwa argued that the market, which grew from 70,000 metric tonnes in 2007 to over 1 million metric tonnes in 2022, resulted from the efforts of multiple investors—and that Dangote should focus on collaboration rather than domination. “I think it’s monopolistic. I think a market should be protected to encourage growth. The LPG industry in Nigeria grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022. That was done by collaboration — collaboration with the Federal Government, the NLNG, and offtakers. Everything was done in collaboration. It grew from 70,000 to 250 to 800, and now over a million,” Okoduwa said. He stressed that growth cannot be achieved through a monopoly but through collaboration. “Today, we are just under 5kg or 6kg per capita consumption in terms of LPG. Other countries are doing much more. South Africa is doing double digits, Morocco and Tunisia are doing double digits. We can do much more. “So, we should, as an industry and as a country, focus on how to grow the LPG industry and not allow someone (to frustrate the players). Yes, he has invested; yes, it’s a capital economy, but he should not be allowed to frustrate the players. “There are people who have spent money, spent resources, even business and development, and someone just comes in to reap from the work that has been done. I’m sure he wouldn’t have built if there had not been an existing market. The work has been done, he should respect the market and let us grow. It shouldn’t be a zero-sum strategy. It should be collaborative,” he said. In his recommendation, the gas expert said that though Dangote has the upper hand, he should embrace collaboration. “My advice to him is that the pie can be bigger. The Nigerian market is about 1.3 million tonnes. The Nigerian LPG market can be 5 million tonnes. He should work towards collaboration rather than competition, because at the end of the day, everybody benefits,” he added. The PUNCH