The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has strongly opposed Dangote Refinery’s plan to distribute petroleum products directly to outlets across the country, warning that the move could create a disguised monopoly and threaten thousands of jobs in the sector.
In a statement issued on Monday by its National Public Relations Officer, Joseph Obele, PETROAN expressed concern that the refinery’s decision to integrate forward into the downstream sector may undermine market competition and centralize control of fuel distribution.
“With a daily production capacity of 650,000 barrels, Dangote Refinery should be competing with international refineries, not entering the distribution space,” the association said, arguing that the move could distort Nigeria’s petroleum retail market.
PETROAN also alleged that the company’s dominant market position could enable it to fix prices, limit competition, and potentially exploit consumers—practices the association claims are consistent with Dangote Group’s operations in other sectors.
While acknowledging the refinery’s capacity to meet domestic demand and export surplus, PETROAN cautioned that such vertical integration could marginalize existing players in the downstream sector and lead to significant job losses if not properly regulated.
