By John Moses
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has voiced serious concerns over Dangote Refinery’s plan to distribute petrol and diesel directly to end users across the country, warning that such a move could destabilise the nation’s downstream oil sector.
In a statement issued on Monday, PETROAN spokesperson Joseph Obele cautioned that the proposed distribution strategy could lead to widespread job losses and the closure of many small and medium enterprises operating within the fuel supply chain.
The alarm follows Dangote Refinery’s June 15 announcement outlining its intention to bypass traditional distribution channels by supplying fuels directly to consumers nationwide.
Reacting to the development, PETROAN President Dr Billy Gillis-Harry warned that the move could create a monopolistic environment, threatening the viability of independent fuel marketers, tanker operators, and modular refinery owners.
“With a capacity of 650,000 barrels per day, Dangote Refinery should focus on competing on a global scale rather than saturating the local market,” Gillis-Harry argued. “This approach risks dismantling the current supply chain and placing thousands of jobs at risk.”
He added that Dangote’s planned rollout of 4,000 Compressed Natural Gas (CNG) tankers—meant to reduce delivery costs—might also result in traditional fuel transporters being pushed out of the market.
PETROAN is calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Minister of State for Petroleum Resources to implement price controls and ensure a competitive, fair market environment.
Gillis-Harry emphasised that unchecked market dominance could result in artificial fuel pricing and a loss of consumer protections.
