Oil marketers under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have raised serious concerns over the Dangote Petroleum Refinery’s plan to distribute fuel directly to filling stations and major fuel consumers across the country.
In a statement released on Monday by PETROAN’s Publicity Secretary, Joseph Obele, the association warned that the new distribution strategy could undermine the downstream sector, potentially resulting in job losses and the emergence of a monopoly.
With its massive 650,000-barrel-per-day capacity, the Dangote refinery was expected to focus on production and export, not direct fuel distribution, the marketers argued.
“This massive refinery, one of the largest in sub-Saharan Africa, is expected to satisfy domestic fuel demand and export surplus products,” the oil dealers said.
According to the association, Dangote’s entry into retail distribution may enable it to dominate the market, restrict competition, and manipulate prices—similar to what it claims has occurred in other sectors.
“The company may leverage its market power to fix prices, limit competition, and exploit consumers, much like it has done in other sectors,” PETROAN stated.
The association accused the refinery of planning to adopt a pricing penetration strategy—initially offering lower prices to eliminate competition before asserting control.
“This could lead to a massive shutdown of filling stations across Nigeria, resulting in widespread job losses. The introduction of 4,000 brand-new Compressed Natural Gas-powered tankers by the Dangote refinery poses a significant threat to the livelihoods of thousands of truck drivers and owners. While CNG trucks may offer a lower cost of transporting petroleum products, this shift could lead to widespread job losses in the industry,” the statement added.
They further warned that Dangote’s “forward integration strategy” could displace modular refineries and small-scale operators, reducing their market share and operational viability.
“It is obvious that Dangote plans to gain full monopoly of the downstream sector, which would enable the company to exploit Nigeria’s petroleum consumers. This could lead to higher prices, reduced competition, and decreased economic efficiency.”
Dr Billy Gillis-Harry, the National President of PETROAN, urged regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Minister of State for Petroleum Resources, to intervene.
“The National President of PETROAN, Dr Billy Gillis-Harry, calls on the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Minister of State for Petroleum Resources to put in place price control mechanisms to prevent any form of monopoly,” the statement read further.
Gillis-Harry stressed that strong competition must be maintained to avoid anti-competitive practices and protect jobs.
PETROAN projected that up to 2,100 retail outlet owners, 70 tank farm operators, and 95 jetty managers could be forced out of business due to Dangote’s move. Marketers who had invested heavily in infrastructure during Nigeria’s long period of petrol importation are now faced with the possibility that their facilities could become obsolete under Dangote’s distribution model.
The association cited a decline in retail outlets from 7,000 to 4,900 since the 2023 deregulation, with 70 tank farms and 95 jetties now lying dormant as operators abandon them due to reduced demand.
Responding to the claims of the marketers, the Dangote refinery defended the plan, asserting that it aims to reduce fuel prices and increase accessibility in both urban and rural areas. The refinery explained that the new model would also eliminate middlemen, reduce logistics costs, and boost economic growth.
“Dangote Petroleum Refinery is pleased to announce the commencement of a significant national initiative designed to transform Nigeria’s fuel distribution landscape. Effective August 15, 2025, the refinery will begin the distribution of Premium Motor Spirit and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country, with free logistics to boost the distribution network.
“This strategic programme is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability and supporting Nigeria’s economic development,” the company said.
According to the statement, petrol stations can now make direct purchases and receive free delivery, thereby improving efficiency and affordability.
