Fear has gripped petroleum product marketers and retailers as Dangote Refinery announced plans to begin nationwide distribution of premium motor spirit (petrol) and automotive gas oil (diesel) starting 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 that industry experts believe will cause significant disruptions in the country's downstream sector.
Industry Stakeholders Express Divided Opinions
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.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, expressed serious concerns about the implications of Dangote Refinery's forward integration strategy.
"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 told BenriNews.
He further warned that storage facility owners could go out of business, leading to significant job losses. "Once the supply chain is controlled by one company, the chances of the petrol price being inflated and imposed on Nigerians are likely. It is not only the players in the downstream that will suffer, but Nigerians," he added.
However, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), dismissed any potential threat to its members, describing Dangote's move as "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. The move will not impact IPMAN members negatively. We are still strong and reliable in the downstream sector," Ukadike stated.
Potential Market Disruption
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. Retailers have already raised alarms over potential job losses and filling station shutdowns as a result of the refinery's latest move.
Despite soaring global oil prices, domestic petrol prices have remained relatively stable, ranging between N875 and N910 per litre in Lagos and Abuja.
Industry watchers are closely monitoring how this development will reshape Nigeria's petroleum retail landscape and what it means for consumers in the long run.
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