The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed deep concern about Dangote Refinery’s plan to roll out 4,000 trucks for petrol and diesel distribution across the country starting August 15, 2025.
According to The Nation, PETROAN believes this move could severely impact smaller fuel operators, possibly forcing them out of business and triggering widespread job losses. The association is worried that Dangote’s entry into large-scale distribution could create a monopoly in Nigeria’s downstream oil sector.
Dr. Joseph Obele, PETROAN’s National Public Relations Officer, urged Dangote Refinery to compete internationally instead of focusing on local markets. In his words, “PETROAN warns that Dangote’s tactics may include a pricing penetration strategy, where they reduce prices to capture market share, with the ultimate goal of forcing other filling station operators to quit the market.”
With a daily production capacity of 650,000 barrels, Dangote Refinery stands as one of the largest refineries in sub-Saharan Africa. PETROAN fears the company’s direct supply approach, supported by its new fleet of 4,000 Compressed Natural Gas (CNG)-powered trucks, could sideline smaller players like modular refineries, independent truck owners, and filling station operators.
The association also noted that local suppliers and telecom diesel vendors could suffer significant setbacks if Dangote gains control over pricing and distribution channels.
Dr. Billy Gillis Harry, PETROAN’s National President, called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Ministry of Petroleum to step in, regulate pricing, and ensure fair competition to protect both the market and Nigerian consumers.
Article updated 6 days ago. Content is written and modified by multiple authors.
