Oil marketers across Nigeria have raised serious concerns over the Dangote Petroleum Refinery’s plan to distribute fuel directly to petrol stations and commercial buyers across the country.
Under the umbrella of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the marketers say this move could lead to widespread job losses and the shutdown of many small businesses in the downstream petroleum sector.
PETROAN’s Concerns
According to PETROAN, Dangote’s decision to bypass traditional fuel marketers and supply directly to retailers threatens thousands of businesses that rely on fuel distribution and retail for survival.
Joseph Obele, PETROAN’s Publicity Secretary, explained that the association is concerned about Dangote’s potential dominance of the market. He said the refinery could use its massive production capacity of 650,000 barrels per day to control prices and edge out competitors.
“This could lead to a monopoly situation. Smaller players in the industry won’t be able to compete, which could result in the closure of over 2,100 retail outlets, 70 tank farms, and 95 jetties across the country,” Obele said.
Job Losses and Market Disruption
One of the biggest fears is the impact on employment. Dangote’s plan to roll out 4,000 Compressed Natural Gas (CNG)-powered tankers means many independent truck drivers and depot operators could lose their jobs. PETROAN also pointed out that this direct supply model bypasses existing marketers and depots, disrupting the traditional supply chain.
They warned that such a move could cause ripple effects across related industries, including those that rely on diesel supply, such as telecom companies.
ALSO CHECK OUT: Dangote Refinery Set to Commence Nationwide Fuel Distribution August 15
Call for Government Intervention
PETROAN is calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Ministry of Petroleum to step in. They want clear price regulations and safeguards to prevent market manipulation and ensure a level playing field.
The association insists that while the refinery’s capacity is commendable, it should not be allowed to dominate the downstream sector at the expense of smaller operators.
Dangote’s Plan Moves Ahead
Despite the concerns, the Dangote Refinery is moving forward with its fuel distribution plan, which is expected to officially launch on August 15, 2025. The refinery says it aims to supply fuel directly to the market to improve access, reduce costs, and support nationwide distribution using its fleet of CNG-powered tankers.
Bottom Line:
While Dangote’s entry into direct distribution could improve fuel availability and pricing in the short term, marketers fear long-term damage to competition, jobs, and small businesses in Nigeria’s vital petroleum sector.
