Fear has gripped petroleum product marketers and retailers following Dangote Refinery’s announcement to begin nationwide distribution of premium motor spirit (petrol) and automotive gas oil (diesel) starting August 15, 2025. The refinery plans to deploy 4,000 Compressed Natural Gas (CNG) trucks to supply fuel at no cost to selected customers, a move expected to shake up Nigeria’s downstream oil sector significantly.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Depot and Petroleum Products Marketers Association of Nigeria, Major Energies Marketers Association of Nigeria, and the newly formed Natural Oil and Gas Suppliers Association of Nigeria have expressed serious concerns. They warn that Dangote Refinery’s forward integration strategy could lead to a monopoly, threatening the survival of independent marketers, modular refineries, and truck owners, potentially resulting in widespread job losses and filling station shutdowns.
Billy Gillis-Harry, PETROAN’s National President, cautioned that Dangote’s dominance over the entire supply chain risks inflating petrol prices and stifling competition, ultimately harming Nigerians. He stressed, “The danger of one company dominating the sector is risky for Nigerians,” highlighting that storage facility owners and other stakeholders could be pushed out of business.
Conversely, the Independent Petroleum Marketers Association of Nigeria (IPMAN) dismissed fears of monopoly, with spokesperson Chinedu Ukadike describing the refinery’s distribution plan as a positive development that would improve fuel availability, especially in underserved areas. Ukadike stated, “Dangote said he is not into the business of retailing. We are always ready to take in Dangote Refinery’s petrol products.”
Industry analysts note that Dangote Refinery, with its 650,000 barrels-per-day capacity, is poised to meet domestic demand and export surplus products. However, PETROAN insists that the refinery should focus on competing with global refineries rather than controlling the downstream distribution, warning that such control could lead to price fixing and reduced market competition.
The refinery’s initiative to offer free logistics and credit facilities to large fuel purchasers aims to reduce distribution costs and enhance energy efficiency. While this could lower fuel prices for consumers, stakeholders warn that the long-term consequences may include market monopolization and significant disruptions to the livelihoods of thousands involved in fuel transportation and retail.
As Nigeria’s downstream sector braces for this transformation, calls are mounting for regulatory oversight to prevent anti-competitive practices and protect jobs, ensuring that the benefits of Dangote Refinery’s expansion do not come at the expense of market fairness and consumer welfare.
