Dangote’s Refinery new petroleum products distribution model may favour the average Nigerian, but other retail outlets are crying blue murder that it is a death sentence that could erase jobs.
Senior staff in the petroleum and natural gas sector are backing Dangote because the model would crash prices and neutralise the exploitative tendencies of independent marketers who have been ‘cheating’ Nigerians.
The growing unrest as Dangote Petroleum Refinery prepares to launch the new distribution strategy on August 15, continues to spark sharp reactions from independent marketers and industry stakeholders.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and licensed depot marketers have raised alarm over what they describe as an emerging monopoly. They argue that Dangote’s plan to bypass traditional distribution channels—using a fleet of 4,000 Compressed Natural Gas (CNG)-powered trucks for direct delivery—could dismantle thousands of small businesses and centralize control of the fuel supply chain.
“This isn’t about envy,” said PETROAN President Billy Gillis-Harry. “It’s about ensuring that the downstream sector remains inclusive, competitive, and sustainable for all, not just one dominant player.”
The new distribution model will see Dangote provide Premium Motor Spirit (PMS) and diesel directly to fuel retailers, manufacturers, telecom firms, and other major users nationwide, with free logistics and credit facilities for bulk buyers.
According to Dangote Group, this initiative is part of a broader plan to lower costs, improve energy efficiency, and support economic growth.
“We’re eliminating logistics bottlenecks and improving affordability,” the company said in a statement. It also confirmed plans to build CNG “daughter stations” and deploy 100 CNG transport trucks to ensure efficient distribution.
However, the move has been met with strong resistance from existing depot marketers. Some describe the plan as a “death sentence” for their role in the supply chain. “This is not a revolution; it’s a one-man show,” one marketer warned. “Businesses will fold. People will lose jobs. The supply chain is being erased.”
Traditionally, depot marketers have played a key role in coordinating logistics and financing fuel distribution to retail outlets. Many fear they will be sidelined entirely under Dangote’s model, especially with the refinery also offering credit of up to 500,000 litres to major buyers backed by bank guarantees.
Independent marketers argue that the regulatory authorities have remained silent amid these sweeping changes. “Where is the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)?” asked one frustrated operator. “Someone needs to define the rules of engagement.”
Amid these industry tensions, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has taken a different stance, accusing marketers of manipulating fuel prices at the expense of Nigerian consumers.
PENGASSAN President Festus Osifo criticized marketers for maintaining high pump prices even when global crude prices fell.
“When crude sold at $60 per barrel, fuel should have retailed at N700–N750 per litre. Instead, it stayed around N900,” Osifo said during a press briefing in Abuja. He accused marketers of exploiting deregulation to make excessive profits and called on NMDPRA to enforce pricing transparency.
“We’re not against profit,” Osifo added. “But it’s the regulator’s duty to protect Nigerians. Without proper oversight, citizens won’t benefit from lower crude prices—they’ll only suffer when prices rise.”
PENGASSAN also reiterated its call for a sustainable model for state-run refineries, urging the government to adopt the NLNG model, where private investors hold majority shares while the government retains a minority stake. This, they argue, would reduce inefficiencies, remove political interference, and restore functionality to facilities like the long-dormant Port Harcourt Refinery.
As the August 15 implementation date approaches, the sector braces for what could be a disruptive shift in fuel distribution—a transformation hailed by some as long-overdue modernization, but feared by others as the beginning of a dangerous monopoly.
Industry stakeholders are urging urgent policy interventions: enforcing anti-monopoly clauses in the Petroleum Industry Act, opening access to marine terminals and depots, ensuring fair pricing, and supporting third-party logistics providers. Without these steps, they warn, the sector risks becoming less competitive—and more unequal.
