The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised serious concerns over Dangote Refinery's recent announcement to distribute petroleum products directly to outlets across Nigeria, describing it as a "monopoly in the making."

The refinery announced during the weekend its plans to expand fuel distribution nationwide, a move that has prompted warnings from various industry stakeholders about market concentration risks.

PETROAN President Billy Gillis-Harry, speaking on behalf of independent station owners across the country, expressed concern that many members are already feeling pressured by this development.

"We're not against Dangote's success. But no single company should control refining, supply, distribution, and retail all at once," Gillis-Harry stated. "It's a monopoly in the making, and it puts thousands of independent operators at risk."

Threat to Independent Retailers

According to PETROAN, more than 10,000 authorized retail outlets currently depend on accessing fuel from the open market. This established system could collapse if Dangote assumes complete control as the exclusive supplier and distributor.

The association, along with other stakeholders, is now advocating for several measures to maintain market balance, including:

  • Open access to loading depots and marine terminals
  • Enforcement of anti-monopoly provisions under the Petroleum Industry Act (PIA)
  • Fair pricing structures allowing independent marketers to compete
  • Support for third-party logistics, not just refinery-owned transport fleets

These stakeholders argue that such measures are essential to safeguard the diversity of Nigeria's fuel supply chain and prevent the replacement of a flawed subsidy system with a private sector monopoly.

"This isn't about envy," Gillis-Harry emphasized. "It's about making sure the downstream sector remains inclusive, competitive, and sustainable for everyone, not just the biggest."

The controversy comes amid ongoing transformations in Nigeria's petroleum sector following the implementation of the PIA and the removal of fuel subsidies, which have already significantly impacted the market dynamics and pricing structure.

As this situation develops, industry observers note that regulatory authorities will need to carefully balance encouraging local refining capacity with maintaining healthy market competition.

Follow BenriNews on Facebook | Twitter | LinkedIn | WhatsApp | Telegram