By Okafor Joseph, Editor | June 17, 2025 | SpringnewsNG Media Limited

Business & Energy

Tension is rising across Nigeria’s oil and gas downstream sector as Dangote Refinery finalizes plans to commence nationwide distribution of premium motor spirit (petrol) and automotive gas oil (diesel) on August 15, 2025.

The refinery’s decision, which includes deploying 4,000 Compressed Natural Gas (CNG) trucks to deliver fuel directly to select customers at no extra cost, is triggering panic among petroleum product marketers, who fear it could spark a monopolistic takeover of the entire supply chain.

Industry associations such as the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Major Energies Marketers Association of Nigeria (MEMAN), and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) are raising concerns that the move could displace retailers, eliminate competition, and ultimately lead to mass job losses and business closures.

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that Dangote’s strategic push into fuel distribution presents a grave threat not only to industry players but to 250 million Nigerians.

“The bigger implication is the risk of monopolisation. Once the entire petroleum value chain is controlled by one company, we may witness arbitrary fuel pricing, marginalization of storage facility owners, and widespread job losses. The downstream sector may be strangled,” he stated.

He noted that investments worth billions of naira by private depot owners could be rendered worthless if Dangote’s operations dominate the supply chain, leaving smaller players without access to business.

“This is not just about marketers. It’s about the entire country. If one company controls pricing and distribution, Nigerians will eventually bear the brunt of inflated fuel prices and limited access,” Gillis-Harry warned.

On the other hand, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), offered a different perspective, describing Dangote’s move as beneficial to the sector.

“We welcome the development. Dangote Refinery is not venturing into retailing but focusing on supply. We are prepared to distribute their products, and we believe it will improve fuel availability in remote locations previously underserved,” Ukadike said.

This divide in opinion reflects the broader uncertainty gripping the sector as stakeholders assess the long-term implications of Dangote Refinery’s vertical integration strategy.

The concerns come amid stagnant domestic petrol prices, which have remained between ₦875 and ₦910 per litre in Lagos and Abuja despite rising global crude oil prices.

Dangote Refinery’s announcement signals what could be the beginning of a major shake-up in Nigeria’s petroleum industry, with ripple effects expected to impact job security, competition, and pricing across the nation.