Fear has gripped petroleum product marketers and retailers as Dangote Refinery announced plans to begin distribution of premium motor spirit (petrol) and automotive gas oil (diesel) nationwide by August 15, 2025.

The refinery revealed its intention to deploy 4,000 Compressed Natural Gas trucks to supply petrol at no cost to selected customers across Nigeria, a move industry experts believe will cause significant disruptions in the country's downstream petroleum sector.

Industry Stakeholders Divided Over Impact

For petroleum retailers, including the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Major Energies Marketers Association of Nigeria (MEMAN), and Dangote's latest, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), the move potentially spells doom for stakeholders within the country's oil and gas sector.

However, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has dismissed any potential threat to its members.

In an interview with BenriNews, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), warned that Dangote Refinery's plan portends significant implications for all players in the oil downstream sector, including Nigerian consumers.

"The bigger implication is that the tendency for Dangote Refinery to monopolise the industry and make all the value chains be controlled by one individual is risky for 250 million Nigerians," Gillis-Harry stated.

He further explained, "What it means is that the storage facility owners will go out of business with investments ranging into billions. Job losses will go with it. Nigerians will suffer ultimately for it, because once the supply chain is controlled by one company, the chances of the petrol price being inflated and imposed on Nigerians are likely."

IPMAN Sees Positive Development

Contrary to PETROAN's concerns, Chinedu Ukadike, spokesperson for IPMAN, welcomed Dangote's move, describing it as a positive development that does not necessarily pose a threat to petroleum product marketers.

"It is a welcomed development. Dangote said he is not into the business of retailing. We are always ready to take in Dangote Refinery's petrol products," Ukadike told BenriNews.

He added, "The move will not impact IPMAN members negatively. We are still strong and reliable in the downstream sector. Petrol would reach some filling stations that hitherto don't receive the product."

This development comes barely a week after Aliko Dangote, president of Dangote Refinery, hinted at plans to announce major shake-ups in the country's oil sector.

Despite soaring global oil prices, domestic petrol prices have remained unchanged between N875 and N910 per litre in Lagos and Abuja.

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