The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has voiced strong opposition to Dangote Refinery's recent announcement regarding its plan to commence direct nationwide distribution of petrol and diesel. This forward integration strategy, set to begin on August 15, includes offering free logistics support and utilizing a fleet of 4,000 new Compressed Natural Gas (CNG)-powered trucks. The refinery aims to streamline fuel supply by bypassing traditional middlemen and delivering directly to marketers, petrol dealers, manufacturers, telecom companies, aviation firms, and other large-scale users, also offering credit facilities to substantial purchasers.

PETROAN argues that this move by the Dangote Refinery, with its 650,000 barrels per day production capacity, threatens to create a monopoly in Nigeria's downstream oil sector. Dr. Billy Gillis-Harry, President of PETROAN, stated that the refinery should be competing on a global scale rather than undermining the domestic market. Joseph Obele, PETROAN's National PRO, further warned that Dangote's market strength could lead to unilateral price setting and aggressive pricing tactics, potentially forcing other players out of business.

The association highlighted several severe consequences of Dangote’s direct distribution plan. A primary concern is the potential for massive job losses across Nigeria's petroleum value chain. Thousands of truck drivers, filling station operators, local suppliers of petroleum products, and even telecom diesel suppliers are at risk of being displaced. PETROAN fears that a 'pricing penetration strategy' by Dangote could lead to widespread shutdowns of existing filling stations and businesses that rely on the traditional supply chain.

Additionally, the introduction of 4,000 CNG-powered tankers, while potentially lowering transportation costs, is seen as a direct threat to the livelihoods of current petroleum product truck drivers and owners. The association also raised concerns about the negative impact on modular refineries, whose operations and market share may be significantly threatened by Dangote’s dominance. PETROAN asserts that if Dangote gains full monopoly, it could lead to higher prices for Nigerian consumers, reduced competition, and decreased economic efficiency.

In response to these fears, PETROAN has urged the Nigerian government and regulatory bodies, specifically the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Minister of State for Petroleum, to intervene swiftly. The association recommends introducing robust price control mechanisms, enforcing fair competition policies, and strengthening regulatory oversight to prevent market dominance. PETROAN also called for government support for local refineries to ensure access to crude oil and for the development of alternative livelihoods for workers who may be displaced by this new market dynamic. The collective plea is for a balanced and inclusive approach to energy distribution that protects consumers, preserves jobs, and maintains a healthy petroleum ecosystem.