PETROAN to FG: Check Dangote’s Monopoly Plans in Downstream Sector

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that Dangote Refinery’s plan to begin nationwide distribution of petrol and diesel by August 15 could lead to a disguised monopoly and trigger massive job losses across the downstream petroleum. In a statement signed by Joseph Obele, PETROAN’s national public relations officer, the association expressed concern over the refinery’s adoption of a forward integration strategy, saying it could upend existing market dynamics and hurt competition.

“The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns about Dangote Refinery’s forward integration adoption, warning that it could lead to a monopoly in disguise and pose a significant job loss threat to Nigeria,” the statement reads.

With a production capacity of 650,000 barrels per day, PETROAN said Dangote should focus on competing with global refineries rather than becoming a distributor in the domestic downstream sector.

The association alleged that Dangote may adopt 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.”

This approach, PETROAN said, would “lead to a massive shutdown of filling stations across Nigeria, resulting in widespread job losses.”

PETROAN also warned that the refinery’s introduction of 4,000 compressed natural gas-powered trucks “poses a significant threat to the livelihoods of thousands of truck drivers and owners.”

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The association urged regulators to impose price control measures and strengthen oversight to protect market competition.

“It is obvious that Dangote plans to gain full monopoly of the downstream sector, which would enable the company to exploit Nigeria’s petroleum consumers,” the statement added.