By Kunle Sanni –
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed strong opposition to Dangote Refinery’s plan to distribute petroleum products directly to retail outlets across the country, warning that the move could stifle competition and lead to massive job losses in the sector.
Dangote Refinery, with a production capacity of 650,000 barrels per day, announced over the weekend that it is preparing to roll out a nationwide fuel distribution network as it ramps up operations.
In a statement on Monday, PETROAN’s National Public Relations Officer, Joseph Obele, said the association fears the move could create a disguised monopoly in the downstream oil sector.
“With a production capacity of 650,000 barrels per day, Dangote Refinery should be competing with global refineries, not taking over distribution within the local market,” the statement read.
The association accused the refinery of using its market power to dominate other players, warning that such control could allow Dangote to fix prices, limit competition, and ultimately exploit consumers—similar to what it alleged has happened in other industries where the company operates.
PETROAN expressed concern that Dangote may employ aggressive pricing strategies—such as temporarily lowering fuel prices to capture market share—which could force many independent filling stations out of business.
“This could lead to a massive shutdown of filling stations across Nigeria, resulting in widespread job losses,” the statement added.
The association also raised concerns over the refinery’s plan to deploy 4,000 new compressed natural gas (CNG)-powered tankers, arguing that while CNG trucks may reduce transport costs, the move threatens the jobs of thousands of existing truck drivers and tanker owners who rely on diesel-powered fleets.
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