Aliko Dangote Moves to Crash Cooking Gas Prices, Threatens Direct Sales to Consumers
Aliko Dangote Moves to Crash Cooking Gas Prices, Threatens Direct Sales to Consumers
In a major development that could bring relief to millions of Nigerian households, Africa’s richest man, Alhaji Aliko Dangote, has initiated bold steps to significantly reduce the price of cooking gas in the country.
Dangote, the President of the Dangote Group, revealed that his company is poised to intervene directly in the supply chain if distributors and retailers continue to resist the downward adjustment in prices.
He expressed concern over the soaring cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, despite his refinery’s efforts to ensure increased domestic production and availability. He warned that if distributors continue to frustrate efforts aimed at making gas affordable, the Dangote Group would bypass them and begin direct sales to consumers.
This move is seen as a potential game-changer in the domestic energy sector, especially at a time when many Nigerians are struggling with the rising cost of living and high inflation. Cooking gas prices have seen a sharp increase over the past year, pushing many households to revert to less clean and environmentally harmful energy sources like firewood and charcoal.
Industry watchers say Dangote’s intervention could force a major shakeup in the LPG market structure, especially if his refinery begins direct retail distribution.
The Dangote Refinery, which commenced operations earlier this year, has a refining capacity of 650,000 barrels per day and is expected to significantly reduce Nigeria’s dependence on imported petroleum products.
Consumers and advocacy groups have already started praising the move, urging swift implementation of the direct-to-consumer sales model if resistance from current market players persists.
