₦airaland Forum

President of the Dangote Group, Alhaji Aliko Dangote, has announced plans to reduce the price of Liquefied Petroleum Gas, also known as cooking gas. He also promised to start direct sales of the product to consumers should the existing distributors fail to allow the price crash in cooking gas.

However, operators in the sector have disagreed with the plan, saying the businessman was planning to monopolise the LPG sector. They kicked against the move on Monday, as the dealers expressed fear of a possible monopoly.

Speaking during a recent tour of his refinery by some local and foreign guests, Dangote stressed that the current price of cooking gas is expensive and not affordable for the common people who depend on firewood for cooking.

He disclosed that the refinery now produces 22,000 tonnes of LPG daily and it is ramping up production for distribution into the Nigerian market, especially as Nigerians move towards the use of gas for cooking.

Speaking to members of the Lagos Business School CGEO Africa, at the refinery in Lekki, Dangote said, “The one that we didn’t write, which you must have seen, is LPG. Currently, we do LPG of about 2,000 tonnes per day. You know Nigeria is gradually moving to the usage of LPG. But I believe it is expensive, but right now we’re trying to bring down the price and make it cheaper.”

Dangote warned that “if the distributors are not trying to bring it down, we’ll go directly and sell to the consumers, so that people will now transit from firewood or kerosene to LPG for cooking.”

The PUNCH recalls that Dangote plans to start the direct distribution of petrol, diesel, and aviation fuel to marketers nationwide in August, with 4,000 CNG-powered buses procured for the exercise.

Currently, the price of cooking hovers around N1,000 and N1,300 per kilogramme. Dangote said this would be brought down to ensure affordability.

Operators kick

It appears operators in the LPG market are not pleased with Dangote’s plan to disrupt the sector.


Speaking in an interview with our correspondent, the former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, described the plan as monopolistic.


Okoduwa expressed concern that the billionaire businessman should recognise the fact that some investors grew the market from 70,000 metric tonnes in 2007 to over 1 million metric tonnes in 2022, saying collaboration is the way to go.

“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.

Told that Dangote’s major concern is to bring the price of cooking gas to a rate where everybody can afford it and stop cooking with firewood, Okoduwa retorted, “I have news for him. He should go to the Northeast, where you have the least consumption of LPG. He should go to the Northeast and start developing the LPG infrastructure there. I think we will tell him thank you for that.”

Similarly, the Executive Secretary/Chief Executive Officer, Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, doubted the possibility of Dangote selling gas directly to consumers or to crash the price.

“I am saying that it’s unrealistic. What is the position with PMS? Has the refinery been able to sell petrol directly to you and me into our cars at a very cheap rate?” Essien asked.

Source: https://punchng.com/Marketers-protest-as-Dangote-moves-to-crash-cooking-gas-price

Dangote better be careful. This is the kind of thing that has Bill Gates in trouble in certain quarters - crashing people's means of livelihood by donating it for free!

Aliko Dangote is doing the lord's work.

Those marketers that are protesting should pool their resources together and build a refinery so they can give his refinery a run for his money.

God bless Alhaji Dangote.

These importers just want to snuff out life from the masses. They want to enjoy the market monopoly with high price but caution to the same attitude as if they are better. They should allow competition to flow, in as much as he is not disturbing them from getting the products.

We haven't seen anything yet by the time other players come into the market, we will have full benefits of what they call deregulation.

Dangote has announced plans to reduce the price of Liquefied Petroleum Gas, also known as cooking gas. However the real enemies of Nigeria who have fed fat on the nation's natural gas resources for years while the consumers suffered are ready to resist such price slash. What a nation! Unfortunately, you will see gullible people who were born to suffer supporting this resistance

AS E BE SO MAKE UNA PROTECT THIS DANGOTE MAN SO OOOO

Are they insane? Marketers are the ones affecting productivity in Nigeria. APC politicians are mostly these marketers cos they are using govt advantage and influence to maintain a hold on pricing

Bad head full nigeria sha

So the poor mustsuffer for them to get rich

This headline has many hidden meanings. Like Dangote or hate him, the masses are the ones being played here. Dangote came into the Cementing sector, we all other players were pushed out. We know how the price of cement went. Dangote business model is market disruption at errant, then monopoly and finally the masses pay massively for the only supplier.

I have people thinking my statement lacked facts, Dangote and Ibeto has been in and out of court over cement, Dangote and BUA has issues over sugar. Dangote cement is one of the priciest in the market. These are facts, Dangote business model end game is monopoly.

They are protesting he should not crash the price abi wetin.... These greedy marketers sef

Why are marketers complaining please? What kind of evil people do we have in this country? While we grow under horrible leaderships, some people just make it harder daily for the regular citizens. Many families find it hard to purchase gas. If Dangote can lessen the cost, what’s the issue?

Just as Dangote begins to supply directly Petrol to stations, he can please build little outlets where citizens can buy directly from, if possible, to avoid these evil racketeering marketers.

FreeIgboho:
Dangote better be careful. This is the kind of thing that has Bill Gates in trouble in certain quarters - crashing people's means of livelihood by donating it for free!

so you see it as a bad idea dey too the marketers will also gain From it

AS E BE SO WORD FOR STREET SAY HIM WAN CRASHAM GO 100 NAIRA PER KG SO OOOO

Imagine!!!... These so called marketers are one of the Nigeria problems... They only care about their pockets... What is funny about these so called marketers is that fact that once there is a hike in price of petrol or gas, they increase their pump price with immediate effect... But let Government announce reduction of fuel or gas price then they start emotional blackmail... These devilish marketers would tell you they can't sell the products they bought at high rate to consumers at lower rate.

Corruption in Nigeria no be only government.. mtcheww

With all ds noise that he’s making, it wont pass 50naira price reduction oh. Cos To him, that’s what price crashing means as we can see how he has crashed petrol price na

Imagine...just imagine what you wrote up there... mtcheww

FreeIgboho:
Dangote better be careful. This is the kind of thing that has Bill Gates in trouble in certain quarters - crashing people's means of livelihood by donating it for free!

Speaking during a recent tour of his refinery by some local and foreign guests, Dangote stressed that the current price of cooking gas is expensive and not affordable for the common people who depend on firewood for cooking.

Same thing he's trying to do in the downstream sector.

If he truly cares about the poor as he wants to portray himself, he should crash the price of cement too rather than this unnecessary eye service

FreeIgboho:
Dangote better be careful. This is the kind of thing that has Bill Gates in trouble in certain quarters - crashing people's means of livelihood by donating it for free!

careful about what, assasination or they will stop borrowing him money

A livelihood that makes life difficult n hard for the people that one naa livelihood, Dangote is not Father xmas so whatever price he crashes the price to reflects the market reality

Dangote and Matketers are not in the same class, he is a " Producer" he has more legit influence on price than those rogues called marketers exploiting

Taich:
This headline has many hidden meanings. Like Dangote or hate him, the masses are the ones being played here. Dangote came into the Cementing sector, we all other players were pushed out. We know how the price of cement went. Dangote business model is market disruption at errant, then monopoly and finally the masses pay massively for the only supplier.

Well, BUA and LaFarge haven't been pushed out of the cement market, neither has Ibeto cement.

adenigga:
Source: https://punchng.com/Marketers-protest-as-Dangote-moves-to-crash-cooking-gas-price

Those dot dot dot will be sad about this news now 😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭

Maxymilliano:
Same thing he's trying to do in the downstream sector.

If he truly cares about the poor as he wants to portray himself, he should crash the price of cement too rather than this unnecessary eye service

OK O...but remember that Dangote is the one paying his workers, and paying for upgrades and maintenance costs, not government.

Shouldn't they be happy. That is to tell you that government is not always the problem but the average Nigerian man is greedy.

I bought 1kg gas #300 during Jonathan era now under Tinubu it is #1200.
Dangote wants to crash it yet marketers are not happy.

Not saying Dangote has good intentions because his motive is always to eliminate competitions and make him the sole distributor and then he will hike the price to recover his losses.

Wickedness of men. How Tinubu vilified Jonathan. I wonder how Tinubu sleeps at night now.

SmartPolician:
Aliko Dangote is doing the Lord's work.

Those marketers that are protesting should pool their resources together and build a refinery so they can give his refinery a run for his money.

God bless Alhaji Dangote.

what happened to cement, why is he not bordered about cement prices?

Let him start with cement so Nigerians can afford it.

By 'crashing', you mean to reduce the price by #50 or #100. Let's see by how much he'll 'crash' it.

The Marketers should build a coalition, build a refinery then rival Dangote. Yes he is monopolizing the gas sector. But if that will make the masses have cheaper gas , then nature will welcome it. I pray it comes to pass

He's getting closer to his grave. Only good deeds can save us in that tight 6 feet termite bound zone.

All I am going to say is that if subsidy had gone in 1992, by now there would have been 8 or more dangote style refineries in this country, which would have been exporting even...and earning lots of dollars.

I don't seem to understand !

So, they are happy with the way the Masses are finding it difficult to get money to buy the product at high price.

Now, this where the work of a Good President comes in, lets wait and see the if the Presidents also want her Citizen to pay more for a Product that can be purchased cheaply.

Let other marketers that are complaining build their refineries and compete with dangote.. business is about competition

Marketers just like Buhari and Tinubu are going straight to hell


they can't escape it