PETROAN Opposes Dangote Refinery’s Fuel Distribution Strategy, Warns of Monopoly, Job Losses

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has strongly criticized the Dangote Refinery’s plan to expand into national fuel distribution, warning that such a move could lead to monopoly-like control over the downstream petroleum sector and trigger massive job losses.

In a statement released on Monday and signed by the association’s National Public Relations Officer, Joseph Obele, PETROAN expressed serious concerns about Dangote’s forward integration strategy, which would see the refinery not only produce fuel but also directly distribute it across the country.

“With a massive production capacity of 650,000 barrels per day, Dangote Refinery should focus on competing globally—not operate as a local distributor,” the statement read.

Concerns Over Market Domination and Price Manipulation

PETROAN accused the refinery of adopting tactics used in other sectors to dominate markets, including price penetration strategies—offering lower prices to quickly capture market share and force smaller operators out of business.

“This could result in a wave of filling station shutdowns and widespread job losses,” PETROAN warned.

The association further cautioned that 4,000 new CNG-powered tankers planned for deployment by the refinery would pose a serious threat to existing truck drivers and independent tanker operators.

“While CNG trucks may reduce transportation costs, they also risk displacing thousands of workers,” the association said.

Wider Impact on Stakeholders

PETROAN outlined how various players in the petroleum sector may be affected by Dangote’s distribution ambitions, including:

Filling station operators, who may be priced out of the market

Modular refineries, whose market share could be undermined

Local petroleum product suppliers, who may lose direct access to end-users

Telecom diesel suppliers, whose business models may be disrupted

“It’s clear that Dangote’s strategy aims to take full control of the downstream sector, putting many businesses and jobs at risk,” PETROAN stated.

The association urged for urgent regulatory intervention to prevent the emergence of what it describes as a private-sector monopoly that could harm consumers, reduce competition, and destabilize thousands of livelihoods across the country.

Daily Trust

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