Petroleum retail outlets owners warn Dangote Refinery’s distribution initiative portends job loss, monopoly

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government and key industry regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to intervene in the Dangote Refinery’s planned fuel distribution expansion, warning it could lead to widespread job losses and market monopoly.

Speaking on Channels Television’s The Morning Brief on Tuesday, PETROAN President Billy Gillis-Harry expressed concern that the Dangote Refinery’s move to distribute petrol and diesel directly and freely to retail outlets and bulk consumers across the country would threaten thousands of businesses and livelihoods.

On Sunday, June 15, 2025, the $20 billion Dangote Refinery announced it would commence free nationwide delivery of petrol and diesel to marketers and large-scale users starting August 15. The company has acquired 4,000 Compressed Natural Gas (CNG)-powered tankers for this initiative and is offering a credit facility for bulk buyers of 500,000 litres or more.

Marketers and transporters have pushed back against the move, warning it will undermine depot owners, independent truck operators, and retail stations who currently serve multinational clients directly.

Gillis-Harry also noted that no consultations were held with stakeholders such as retailers or tanker drivers prior to the announcement.

The PETROAN leader emphasized that the PIA regulates pricing, licensing, and operations, and warned against a single entity dominating logistics, refining, and retail segments of the petroleum supply chain.

He called for a stakeholder roundtable to ensure competitive fairness and regulatory enforcement, while adding that PETROAN is exploring alternative product sourcing strategies to support its members.

Earlier, oil marketers held emergency meetings after Dangote Refinery announced that it will start a nationwide distribution of diesel, petrol (PMS), and compressed natural gas (CNG) from August 15.

A source from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) said that members are holding “long meetings” to discuss the impact of this development.

Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), stated that his group has been engaged in serious talks since the announcement.

“We will hold another press conference today,” he said. “It’s now that my other sister associations are waking up to realise that this is a big danger that is going to be part of the entire industry.”

“This will wipe out businesses,” Gillis-Harry added.

A member of the Independent Petroleum Marketers Association of Nigeria (IPMAN) also confirmed that their leaders are meeting to study how Dangote’s entry into retail fuel sales will affect the industry.

With the refinery set to take control of fuel production and distribution, stakeholders worry that this shift could change supply chains, fuel prices, and the future of many independent marketers which hitherto independent marketers and depots have long controlled.