Oil marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have raised concerns over the Dangote Petroleum Refinery’s plan to distribute fuel directly to filling stations and other businesses nationwide.
PETROAN warned that the policy could lead to job losses and place Dangote in a monopoly-like position. With a production capacity of 650,000 barrels per day, the association argued that the refinery should be competing with global refineries, not operating as a distributor in the downstream sector.
“This massive refinery, one of the largest in sub-Saharan Africa, is expected to satisfy domestic fuel demand and export surplus products,” PETROAN said in a statement signed by its Publicity Secretary, Joseph Obele.
The group alleged that Dangote’s strategy could include predatory pricing to dominate the market, leading to the closure of filling stations and job losses. It expressed worry over the introduction of 4,000 CNG-powered tankers by the refinery, stating that while cost-effective, the move threatens the livelihoods of truck drivers and owners.
According to PETROAN, Dangote’s direct supply strategy—what it called forward integration—could marginalise various players in the sector, including modular refineries and suppliers of diesel to telecom companies. The association maintained that thousands of fuel retail outlets, tank farms, and jetties face extinction due to the new distribution model.
It stated that many marketers had invested heavily in logistics and infrastructure during the fuel import era, but those investments now risk becoming obsolete as Dangote bypasses traditional supply chains. Already, PETROAN reported that over 4,900 petrol outlet owners have exited the market since the deregulation of 2023. The number of retailers, it said, has dropped from 120 to 50, while many tank farms and jetties are idle.
The association urged regulatory intervention, calling on the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Minister of State for Petroleum Resources to introduce price control mechanisms and ensure a fair market environment. PETROAN’s National President, Dr. Billy Gillis-Harry, said robust regulation, fair competition, and employment protection were essential for sectoral stability.
Contrary to these concerns, the Dangote Petroleum Refinery maintained that the direct distribution initiative would lower fuel prices, improve access to fuel across urban and rural communities, and strengthen economic efficiency. The company assured that petrol stations would now receive free product delivery without involving third-party middlemen.
Industry stakeholders expressed mixed reactions to the development. One petroleum economist described the strategy as a textbook example of vertical integration, not a monopoly, noting that although it could disrupt existing supply models, it would also improve product availability and reduce pump prices. The analyst stressed that what matters is the regulatory framework that ensures fair play—not the size or scale of Dangote’s operations.
Independent marketers also weighed in, describing the move as a welcome development that could enhance energy access and create more jobs. According to them, where their trucks cannot reach, Dangote’s CNG-powered fleet would ensure product delivery. They argued that increased supply would naturally lead to lower prices.
Dangote Refinery, in a statement, announced that from August 15, 2025, it would begin the nationwide distribution of Premium Motor Spirit (PMS) and diesel to filling stations, manufacturers, telecom firms, aviation, and other major consumers. The initiative includes free logistics support and is aimed at boosting national fuel access, eliminating middlemen, and enhancing economic sustainability.
The refinery also revealed plans to invest in CNG daughter booster stations and deploy over 100 CNG trucks nationwide. It promised to provide credit support for large-scale buyers—offering an additional 500,000 litres on a two-week credit backed by bank guarantees for those purchasing a minimum of 500,000 litres.
According to the company, the programme is designed to revitalise dormant filling stations, boost job creation, increase government revenue, and support economic growth through affordable fuel access. The refinery said the initiative aligns with the Federal Government’s Renewed Hope Agenda and reflects its commitment to inclusive development.
Registration for participation in the distribution scheme began on June 16 and will end on August 15, 2025, with Know Your Customer (KYC) verification conducted as part of the process.
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