Some oil marketers in the country have warned that the plans by Dangote Refinery to commence the nationwide distribution of petroleum products could come with some harmful effects.
The marketers noted that no company should be allowed to solely control the refining, supply, distribution, and retail of petroleum products all at once.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which made its stand known in a statement, joined the increasing number of industry stakeholders cautioning about the risks associated with a market dominated by a single player.
The reaction follows an earlier report by Naijaonpoint, which disclosed that Dangote Petroleum Refinery, on Sunday, announced plans to begin nationwide distribution of Premium Motor Spirit, popularly known as petrol and diesel, from August 15, 2025.
The company is deploying 4,000 brand-new Compressed Natural Gas-powered tankers to boost delivery capacity and improve access to fuel across the country.
According to the statement released by the company, the offer is open to marketers, petrol station dealers, manufacturers, telecoms operators, aviation firms, and other large-scale fuel users.
However, PETROAN says the distribution strategy could harm the industry, adding that they are already being sidelined.
Speaking on behalf of independent station owners nationwide, PETROAN President, Billy Gillis-Harry, said while they are not against Dangote’s progress, care must be taken to avoid a case of monopoly in the industry.
He said, “We’re not against Dangote’s success. But no single company should control refining, supply, distribution, and retail all at once.
“It’s a monopoly in the making, and it puts thousands of independent operators at risk.”
PETROAN cautioned that more than 10,000 authorized retail outlets rely on accessing fuel from the open market, and this system risks falling apart if Dangote assumes complete control as the exclusive gatekeeper.
PETROAN and other stakeholders thereafter made four major demands which are:
– Open access to loading depots and marine terminals.
– Enforcement of anti-monopoly laws under the Petroleum Industry Act (PIA)
– Fair pricing structures that allow independent marketers to compete
– Support for third-party logistics, not just refinery-owned transport fleets.
They claim that these measures will safeguard the diversity of Nigeria’s fuel supply and prevent replacing a flawed subsidy system with a monopoly controlled by the private sector.
“This isn’t about envy, It’s about making sure the downstream sector remains inclusive, competitive, and sustainable for everyone, not just the biggest,” Gillis-Harry added.