Marketers and merchants of petroleum products are terrified as Dangote Refinery plans to start distributing premium motor spirit and vehicle petrol oil (diesel) across the country on August 15, 2025.
This coincides with Dangote Refinery’s announcement over the weekend that it will start distributing fuel and diesel across the country.
According to The Intercept, the refinery intends to use 4,000 compressed natural gas vehicles to provide free petrol to a limited number of clients around the country.
It is anticipated that the action would cause disruptions in the downstream sector of the nation.
The decision portends disaster for those involved in the nation’s oil and gas industry, including petroleum retailers, the Depot and Petroleum Products Marketers Association of Nigeria, the Major Energies Marketers Association of Nigeria, and Dangote’s most recent initiative, the Natural Oil and Gas Suppliers Association of Nigeria.
The Independent Petroleum Marketers Association of Nigeria, meanwhile, denied that its members were in danger.
In separate interviews with The Intercept on Monday, IPMAN spokesman Chinedu Ukadike and Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, expressed differing opinions about Dangote Refinery’s decision to pursue a forward integration approach.
According to Gillis-Harry, the Dangote Refinery’s strategy foretells significant ramifications for Nigerians as well as all other participants in the oil downstream industry.
He asserts that the Dangote Refinery’s tendency to monopolise the nation’s downstream industry is its greater implication.
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He cautioned that controlling the value chain for the supply of petroleum products is dangerous for Dangote Refinery.
Gillis-Harry bemoaned the fact that Nigerians will eventually suffer as a result of Dangote Refinery’s recent action due to the possibility of fuel imposition and rigging.
“Whatever you see me address, know that it is the mindset of all industry players.
“Whether they are NARTO, DAPPMAN, MEMAN, or NOGASA.
“The bigger implication is that the tendency for Dangote Refinery to monopolise the industry and make all the value chains be controlled by one individual is risky for 250 million Nigerians.
“What it means is that the storage facility owners will go out of business with investments ranging into billions. Job losses will go with it.
“Nigerians will suffer ultimately for it, because once the supply chain is controlled by one company, the chances of the petrol price being inflated and imposed on Nigerians are likely. It is not only the players in the downstream that will suffer, but also Nigerians.
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“The danger of one company dominating the sector is risky for Nigerians,” he told The Intercept.
Meanwhile, Ukadike said that Dangote’s move to begin the distribution of petrol and diesel is a good development.
He stressed that the move does not necessarily pose a threat to petroleum product marketers.
“It is a welcomed development.
“Dangote said he is not into the business of retailing.
“We are always ready to take in Dangote Refinery’s petrol products.
“The move will not impact IPMAN members negatively. We are still strong and reliable in the downstream sector.
“Petrol would reach some filling stations that hitherto don’t receive the product,” he told The Intercept.
Retailers expressed concern about possible job losses and filling station closures due to Dangote Refinery’s recent action, The Intercept had reported
Aliko Dangote, the head of Dangote Refinery, had alluded to preparations to announce significant changes to the nation’s oil industry just a week prior.
According to the The Intercept, domestic fuel prices in Lagos and Abuja were steady between N875 to N910 a litre on Monday, despite the skyrocketing price of oil throughout the world.
