Marketers Finally Speak on Dangote’s Nationwide Fuel Distribution Plan

• Dangote Refinery's plan to directly distribute petrol and diesel across Nigeria has raised concerns from the PETROAN, which warned of potential job losses and a monopolistic market
• PETROAN's president, Dr. Billy Gillis-Harry, cautioned that this move could harm competition, increase fuel prices, and threaten the survival of small businesses in the industry
• He urged government authorities to implement pricing controls and protect fair competition to safeguard consumers and preserve jobs in the petroleum sector

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Dangote Refinery's plan to begin direct nationwide distribution of petrol and diesel has sparked anxiety from the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

According to a statement released on Monday, June 16, 2025, by PETROAN spokesperson, Joseph Obele, Dangote's action may have an impact on the downstream industry in the country.

He claimed that the move could lead to the closure of small firms and the loss of many jobs.

Dangote Refinery had announced on June 15, 2025, that it would be distributing gasoline and diesel directly to Nigerian consumers.

Dr. Billy Gillis-Harry, the national president of PETROAN, responded to this development by warning that the plan could lead to a monopolistic market structure, which would hinder competition and jeopardise the livelihoods of thousands of people in the industry.

“With a production capacity of 650,000 barrels per day, Dangote Refinery should be positioning itself to compete with global refiners rather than engaging in direct distribution within Nigeria’s downstream sector,” Gillis-Harry said.

Gillis-Harry pointed out that because of the diminished competition and company closures throughout the fuel retail sector, Dangote's hegemony may result in increased fuel prices.

According to the president, the scenario may also result in a significant loss of jobs for station operators, truck drivers, and suppliers of petroleum products.

He warned that although Dangote's launch of 4,000 new tankers powered by compressed natural gas (CNG) may reduce transportation costs, it may also threaten the jobs of conventional tanker owners and drivers.

“Filling station operators, truck owners, telecom diesel suppliers, and modular refineries are all at risk.

“Dangote’s approach could trigger a pricing penetration strategy aimed at capturing market share and forcing competitors out of the market,” Gillis-Harry added.

Noting similar trends in other areas where the company participates, the PETROAN CEO stated that Dangote's market dominance might permit price setting that could harm consumers.

Thus, Gillis-Harry called on the Minister of State for Petroleum Resources and the Executive Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enact pricing control measures and uphold fair competition laws immediately.

“Competition must be protected and encouraged to safeguard consumers, preserve jobs, and maintain a healthy petroleum distribution ecosystem,” he stressed.

Depot owners react to Dangote's fuel trucks

Legit.ng reported that following Dangote Refinery’s commencement of distribution of petrol and diesel nationwide, starting August 15, members of the Dangote Marketers Group raised serious concerns, describing the move as a death sentence for businesses and the value chain.

The marketers, who bridge the gaps between depot owners and filling stations, fear that the mega refinery’s new strategy of bypassing traditional middlemen and offering direct sales and logistics to end-users will spell doom for their businesses.

One marketer described the move as sounding the death knell on their businesses and means of livelihood, stating that jobs, businesses, and even families would be affected by the impact.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng