The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised alarm over the fuel distribution plan rolled out by Dangote Petroleum Refinery. The group expressed fears that the strategy could destroy fair competition, lead to a hidden monopoly, and push many businesses out of the market.
Speaking on Monday, PETROAN’s National President, Dr Billy Gillis-Harry, warned that the move could cause massive job losses across the country. He explained that the planned forward integration by the Dangote Refinery—set to begin fuel and diesel distribution nationwide from August 15—could threaten thousands of businesses in the downstream sector.
Dangote Refinery recently revealed that it had acquired 4,000 brand-new trucks powered by Compressed Natural Gas (CNG) to boost fuel distribution. The company also plans to support this with CNG stations and over 100 additional tankers across Nigeria, offering free delivery services to large-scale users such as manufacturers, telecom firms, and aviation companies.
Dr Gillis-Harry argued that a refinery of this scale, with a production capacity of 650,000 barrels per day, should be focused on competing globally—not entering direct local distribution. According to him, Dangote’s approach risks taking over the entire downstream sector through what he described as a price penetration strategy, offering lower prices at first to dominate the market. He warned that this could drive smaller filling stations out of business, leaving room for monopoly.
He said this shift would negatively impact several groups including independent truck owners, local fuel suppliers, modular refineries, and telecom diesel vendors, many of whom may lose their jobs or be forced to shut down due to Dangote’s direct supply model and lower transport costs via CNG trucks.
Dr Gillis-Harry called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Ministry of Petroleum to step in. He urged regulators to introduce pricing controls and policies that prevent market manipulation and ensure fair competition, warning that unchecked dominance could harm consumers through higher prices and reduced options.
