Nigeria’s association of petroleum retailers has expressed grave concern over plans by Dangote Refinery to begin selling petrol and diesel directly to consumers, warning that the strategy could disrupt the fuel distribution ecosystem and lead to massive job losses.
In a statement released on Monday, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) criticised the direct-distribution plan announced by the refinery earlier this month.
PETROAN National President, Dr Billy Gillis-Harry, cautioned that the model could undermine existing players in the downstream sector, including independent petrol station owners, private tanker operators, and small-scale refinery businesses.
“This proposed distribution framework would shift the market dynamics dramatically, making room for monopolistic behaviour,” said Gillis-Harry. “Thousands of businesses and jobs could be wiped out as a result.”
He further warned that the refinery’s scale—capable of processing 650,000 barrels per day—coupled with its planned introduction of thousands of CNG-powered tankers, could lead to price manipulation and leave consumers at the mercy of a single dominant supplier.
The association urged regulators and the Federal Ministry of Petroleum Resources to intervene swiftly by introducing competition safeguards and regulatory price checks.
“Without prompt action, we risk creating an uneven playing field where only the largest players survive, to the detriment of workers, small businesses, and ordinary Nigerians,” Gillis-Harry said.
PETROAN insists that market fairness must be prioritised in the wake of growing consolidation within Nigeria’s oil and gas sector.
