{"id":7079,"date":"2025-06-17T09:10:18","date_gmt":"2025-06-17T09:10:18","guid":{"rendered":"https:\/\/beadysword.com.ng\/blog\/?p=7079"},"modified":"2025-06-17T09:10:18","modified_gmt":"2025-06-17T09:10:18","slug":"petroan-warns-of-monopoly-over-dangote-refinerys-nationwide-fuel-distribution-plan","status":"publish","type":"post","link":"https:\/\/beadysword.com.ng\/blog\/2025\/06\/17\/petroan-warns-of-monopoly-over-dangote-refinerys-nationwide-fuel-distribution-plan\/","title":{"rendered":"PETROAN warns of monopoly over Dangote refinery\u2019s nationwide fuel distribution plan"},"content":{"rendered":"
\n

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says the Dangote Refinery\u2019s forward integration adoption could lead to a monopoly in<\/strong>\u00a0disguise.<\/strong><\/p>\n

On June 15, Dangote refinery said it would begin the nationwide distribution of diesel and premium motor spirit (PMS), also known as petrol, on August 15.<\/p>\n

<\/div>\n

In a statement on Monday, signed by Joseph Obele, PETROAN\u2019s national public relations officer, the association said the development could also pose a significant job loss threat to Nigeria.<\/p>\n

\u201cThe Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns about Dangote Refinery\u2019s forward integration adoption, warning that it could lead to a monopoly in disguise and pose a significant job loss threat to Nigeria,\u201d the statement reads.<\/p>\n

\n
<\/div>\n
<\/div>\n<\/div>\n

\u201cWith a production capacity of 650,000 barrels per day, PETROAN argues that Dangote Refinery should be competing with global refineries, not operating as a distributor in the downstream sector.<\/p>\n

\u201cThis massive refinery, one of the largest in sub-Saharan Africa, is expected to satisfy domestic fuel demand and export surplus products.\u201d<\/p>\n

<\/div>\n

According to the statement, PETROAN had earlier said it raised alarms about Dangote\u2019s plans to dominate the downstream sector, citing concerns that the company may use its market power to fix prices, limit competition, and exploit consumers, \u201cmuch like it has in other sectors.\u201d<\/p>\n

\n
Advertisement<\/div>\n
<\/p>\n
\"\"<\/div>\n

<\/ins><\/div>\n<\/div>\n

PETROAN warned that Dangote\u2019s tactics \u201cmay include a pricing penetration strategy, where they reduce prices to capture market share, with the ultimate goal of forcing other filling station operators to quit the market.\u201d<\/p>\n

<\/div>\n

\u201cThis could lead to a massive shutdown of filling stations across Nigeria, resulting in widespread job losses,\u201d the statement reads.<\/p>\n

\u2018INTRODUCTION OF 4,000 TRUCKS POSES THREAT TO TRUCK DRIVERS, OWNERS\u2019<\/strong><\/p>\n

The association further warned that the introduction of 4,000 new compressed natural gas (CNG)-powered tankers by Dangote refinery \u201cposes a significant threat to the livelihoods of thousands of truck drivers and owners.\u201d<\/p>\n

\n
<\/div>\n
<\/div>\n<\/div>\n

\u201cWhile CNG trucks may offer a lower cost of transporting petroleum products, this shift could lead to widespread job losses in the industry,\u201d PETROAN said.<\/p>\n

The adoption of the strategy by Dangote refinery, the association said, will significantly affect various stakeholders, including modular refineries, as their operations and market share may be threatened by Dangote\u2019s dominance.<\/p>\n

\u201cFilling Station Operators: Many may be forced to shut down due to Dangote\u2019s pricing penetration strategy and dominance,\u201d the statement reads.<\/p>\n

\u201cLocal Suppliers of Petroleum Products: Their businesses may be negatively impacted by Dangote\u2019s direct supply to end-users.<\/p>\n

\n
<\/div>\n
<\/div>\n<\/div>\n

\u201cTelecom Diesel Suppliers: Their operations and market share may be threatened by Dangote\u2019s dominance.<\/p>\n

\u201cIt is obvious that Dangote plans to gain full monopoly of the downstream sector, which would enable the company to exploit Nigeria\u2019s petroleum consumers.\u201d<\/p>\n

\n
<\/p>\n
\"\"<\/div>\n

<\/ins><\/div>\n<\/div>\n

According to the association, this could lead to higher prices, reduced competition, and decreased economic efficiency.<\/p>\n

Speaking on the development, Billy Gillis-Harry, national president of PETROAN, said the executive director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the minister of state for petroleum \u201cshould put in place price control mechanisms to prevent any form of monopoly.\u201d<\/p>\n

\n
<\/p>\n
<\/div>\n

<\/ins><\/div>\n<\/div>\n

Gillis-Harry said competition should always be encouraged to protect consumers and promote economic efficiency.<\/p>\n

The association asked the federal government and regulators to encourage a competitive refining market environment.<\/p>\n

\u201cRegulatory Oversight: Strengthen regulatory agencies to monitor market behaviour,\u201d the association said.<\/p>\n

\u201cSupport Local Refineries: Ensure crude oil supply to local refineries.\u201d<\/p>\n

PETROAN also urged the government to mitigate job losses by exploring alternative livelihoods for affected workers.<\/p>\n<\/div>\n

<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says the Dangote Refinery\u2019s forward integration adoption could lead to a monopoly in\u00a0disguise. On June 15, Dangote refinery said it would begin the nationwide...<\/p>\n","protected":false},"author":2,"featured_media":7080,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-7079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/7079","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=7079"}],"version-history":[{"count":1,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/7079\/revisions"}],"predecessor-version":[{"id":7081,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/7079\/revisions\/7081"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/media\/7080"}],"wp:attachment":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=7079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=7079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=7079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}