…Dangote refinery’s monopoly could crush competitors—IPMAN
By Charles Ebi
Petroleum Products Retail Outlets owners Association of Nigeria ,PETROAN, has warned the 650,000 barrels-per-day Dangote Refinery to stop playing the role of a regulator, adding that its actions undermines the rights of marketers.
The association called on the Nigerian Midstream, Downstream Petroleum Regulatory Authority to intervene on Dangote’s plans to takeover distribution of Premium Motor Spirit ,PMS, from its refinery.
PETROAN President, Billy Gillis-Harry, said this in a monitored interview on Arise TV yesterday.
The comment is a continuation protest against Dangote Refinery’s plans to distribute its product directly to petrol stations.
Last Sunday, Dangote Refinery announced free distribution of petrol and diesel to marketers, dealers, and other large users across the country, effectively removing middlemen from the distribution framework.
Dangote cited disparity in pricing across the country, especially in the riverine areas and far North.
The $20bn refinery disclosed that it procured 4,000 brand-new Compressed Natural Gas ,CNG-powered tankers for the execution of the initiative on August 15, 2025.
The president said PETROAN will give 100% support to Dangote Refinery to be successful on its plans.
However, the PETROAN boss said the “Success of one giant should also be a celebrated success of even little lilliputian.
“We are the ubiquitous small little boys across the country, and we are doing a good job, an efficient job in distributing petroleum products to all the nooks and crannies. I’m from the Riverine area, I’m an Ijaw, so I know what he’s talking about that when you go to our areas, the petroleum products costs are very high and difficult to understand.
“But he has to understand that there are cost implications in every strata of the way. One, finance causes, two, logistics causes, three, security challenges, four, time to deliver product from one depot to the other.
“So to that extent, there is nothing wrong with finding a solution that is going to help the country. But how is this solution going to be applied?
“Is that solution going to be a solution for the betterment of Nigeria today and in the future? That should be the question we should answer”.
Addressing the issue of pricing, he said PETROAN members incur costs associated to logistics when they lift from depots, adding that the costs are passed to the consumers. This leads to the difference in pricing across locations.
He called on the NMDPRA, which regulates midstream and downstream activities to intervene.
Gillis-Harry lamented, “It’s good that the country should know that a single individual company cannot take the place of the regulator.
“The regulators will and should do their constitutional duty. Don’t forget that any product you buy from any depot at all that you are going to take to our retail outlets will incur different kinds of cost implications that are not even met by the eye.
“And so when the product gets to the retail outlet, who is going to bear the brunt? It’s you, the Nigerians. Us, the Nigerians. All of us that have a retail outlet don’t mean that I don’t buy petrol or diesel from somewhere else.
So we are very anxious that the pricing being bounded by any one of us, whether they are refiners, or they are depot owners, or they are marketers, or they are retail outlets, should reflect what the PIA provides for in section 207″.
In a similar vein, Independent Petroleum Marketers Association of Nigeria ,IPMAN, has expressed concerns over plans by Dangote Petroleum Refinery to begin free distribution of petrol and diesel nationwide, warning the move could mark the onset of a dangerous monopoly in Nigeria’s downstream sector.
According to IPMAN Chairman in Rivers State, Mr Tekena Ikpaki, the plan, backed by a fleet of 4,000 newly acquired Compressed Natural Gas, CNG-powered tankers, as a veiled strategy that could severely undermine the operations of over 10,000 independent marketers and dealers across the country.
“This initiative may appear generous on the surface, but beneath the goodwill lies a disturbing threat to market diversity and the survival of small and medium-scale operators. If left unchecked, this level of vertical integration, refining, transportation, and retail, by a single company will cripple competition”, he warned.
Dangote Petroleum Refinery had recently announced plans to distribute fuel free of charge to marketers, dealers, and large-scale consumers, citing efforts to support the sector and reduce logistics burdens.
However, IPMAN has warned that such move could distort pricing, force smaller operators out of the market, and grant Dangote undue control over the entire fuel supply chain.
“We acknowledge and support the development of domestic refining capacity. But allowing a single entity to control refining, logistics, and distribution without checks or counterweights is a recipe for monopolistic dominance”.
Mr Ikpaki noted that the introduction of thousands of CNG-powered trucks by Dangote could also push out independent logistics providers, who lack the capital and fleet capacity to compete on such a scale.
“The downstream sector thrives on diversity and accessibility. A monopolized system, no matter the initial goodwill, will inevitably distort market pricing, reduce supply options for retailers, and lead to massive business closures”.
It called on the federal government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority ,NMDPRA, and other oversight bodies to act swiftly and decisively to safeguard the sector.
“We call on the government to enforce the anti-monopoly provisions of the Petroleum Industry Act (PIA) ensure fair access to depots and infrastructure, monitor pricing strategies, and provide protection for independent marketers and logistics players”, IPMAN urged.
Mr Ikpaki stressed that IPMAN’s position is not an attack on investment or innovation but a necessary warning against unregulated dominance.
“This is not about stalling progress. It’s about protecting the integrity, inclusiveness, and sustainability of Nigeria’s petroleum distribution landscape. Without safeguards, this so-called generous distribution initiative could mark the beginning of a dangerous monopoly that the country can ill afford”.
