PETROAN Warns Against Dangote Refinery’s Fuel Distribution Plan

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has criticised Dangote Refinery’s plan to expand fuel distribution to retail outlets across Nigeria. PETROAN warns that this move could create a monopoly disguised as market growth, threatening jobs and competition in the downstream petroleum sector.

In a statement released Monday, PETROAN raised concerns that Dangote Refinery, with its massive 650,000 barrels per day capacity, should focus on competing globally rather than dominating domestic fuel retail. The association fears the company may engage in aggressive pricing strategies to push competitors out of business, potentially causing widespread shutdowns of filling stations and massive job losses.

PETROAN also cautioned that Dangote’s introduction of 4,000 new compressed natural gas (CNG)-powered tankers could displace many truck drivers and transport businesses. The association stressed that Dangote’s direct distribution could negatively impact local suppliers, modular refineries, and telecom diesel providers, further consolidating market power.

The association accused Dangote Refinery of attempting to monopolize Nigeria’s downstream petroleum sector, which could lead to price exploitation and harm consumers nationwide.