PETROAN Raises Alarm Over Dangote Refinery’s Distribution Strategy, Warns of Potential Job Losses and Market Monopoly
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government and key industry regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to intervene in the Dangote Refinery’s planned fuel distribution expansion, warning it could lead to widespread job losses and market monopoly.
Speaking on Channels Television’s The Morning Brief on Tuesday, PETROAN President Billy Gillis-Harry expressed concern that the Dangote Refinery’s move to distribute petrol and diesel directly and freely to retail outlets and bulk consumers across the country would threaten thousands of businesses and livelihoods.
On Sunday, June 15, 2025, the \$20 billion Dangote Refinery announced it would commence free nationwide delivery of petrol and diesel to marketers and large-scale users starting August 15. The company has acquired 4,000 Compressed Natural Gas (CNG)-powered tankers for this initiative and is offering a credit facility for bulk buyers of 500,000 litres or more.
Marketers and transporters have pushed back against the move, warning it will undermine depot owners, independent truck operators, and retail stations who currently serve multinational clients directly.
Gillis-Harry also noted that no consultations were held with stakeholders such as retailers or tanker drivers prior to the announcement.
The PETROAN leader emphasized that the PIA regulates pricing, licensing, and operations, and warned against a single entity dominating logistics, refining, and retail segments of the petroleum supply chain.
He called for a stakeholder roundtable to ensure competitive fairness and regulatory enforcement, while adding that PETROAN is exploring alternative product sourcing strategies to support its members.
