By HeapNews
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has sounded the alarm over what it calls a “monopoly in disguise” following Dangote Refinery’s adoption of a forward integration strategy, warning that it could wipe out competition, force thousands of filling stations out of business, and cost Nigeria thousands of jobs.
In a strongly worded statement, PETROAN said that with a production capacity of 650,000 barrels per day, Dangote Refinery, one of Africa’s larges, should be positioning itself as a global competitor, not a downstream distributor. Instead, the refinery appears poised to dominate the local petroleum market, cutting out smaller players and disrupting the entire fuel distribution ecosystem.
“This is not just about fuel. It is about fairness, competition, and the survival of thousands of Nigerians whose livelihoods depend on this industry,” said Dr. Billy Gillis Harry, National President of PETROAN.
PETROAN expressed fears that Dangote’s tactics could include price penetration strategies, offering fuel at prices other operators cannot match in the short term—only to later increase prices once competitors are forced out.
“Once the competition is crushed and the market is captured, what stops a monopoly from hiking prices at will?” Dr. Harry asked. “We have seen this playbook before in other sectors. The consequences are always the same—job losses, business closures, and suffering consumers.”
The introduction of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers by Dangote Refinery has further heightened PETROAN’s concerns. While the shift to CNG is seen as a cost-effective and environmentally friendly transportation method, PETROAN warns that it could displace thousands of truck drivers and owners who rely on diesel-powered vehicles for their livelihoods.
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“Thousands of truck drivers and independent transporters are at risk of losing everything. This move doesn’t just change how fuel is delivered; it changes who gets to survive in this industry,” Dr. Harry noted.
PETROAN listed several sectors and stakeholders likely to be negatively affected by Dangote’s market dominance:
Modular Refineries, which may struggle to compete with Dangote’s scale;
Truck Owners and Drivers, likely to face job losses due to direct supply chains and CNG tankers;
Filling Station Operators, many of whom risk closure if unable to match Dangote’s pricing;
Local Diesel Suppliers, especially those serving the telecom and generator markets.
Calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Minister of State for Petroleum, PETROAN demanded urgent regulatory intervention, including price controls and stricter market oversight.
“Regulation is not about stifling business—it is about protecting competition and ensuring that no single entity can distort the market,” Dr. Harry said. “We must not allow one refinery to hold Nigeria’s energy future hostage.”
PETROAN’s Key Recommendations Include:
Promoting a competitive refining market;
Ensuring crude supply to local and modular refineries;
Strengthening regulatory oversight to detect anti-competitive behavior;
Mitigating job losses by creating alternative livelihood programs.
As Nigeria battles fuel supply instability and rising energy costs, PETROAN’s warning signals a looming power struggle in the downstream petroleum sector, one that could reshape the country’s economic landscape and determine who controls the flow of energy to millions of homes and businesses.