Petroleum products marketers have raised concerns over what they described as attempts by the Dangote Refinery to dominate Nigeria’s downstream oil sector, warning that such a move could destabilise the market and push many operators out of business.
They expressed their concerns at the Annual General Meeting of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) held on Thursday, July 31, in Abuja, industry leaders urged President Bola Tinubu to intervene and ensure a level playing field, particularly as the country embraces domestic refining.
NOGASA President, Mr Benneth Korie, said marketers remained fully supportive of the Dangote Refinery but feared its operations were increasingly being guided by individuals unfamiliar with the intricacies of the sector.
“So today again, we plead with Mr. President to intervene by advising Dangote to slow down and play by the rules of the game.
“Nobody is against the refinery. If there is any group that supported the Dangote Refinery more than anyone else, it is NOGASA—100%,” Korie said.
He cautioned that while the refinery’s contribution to product supply was welcome, its pricing approach and direct market strategy risked destabilising the ecosystem, especially for independent marketers.
“When certain developments began to unfold, we felt the need to offer advice on how best to proceed, even though we’ve never had the opportunity for a one-on-one discussion with him.
“He’s never invited us, but we’re not bothered. What matters is that the refinery is blending, products are being released, and Nigerians are benefiting,” he added.
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On his part, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, warned of the consequences of a monopolised downstream sector.
He said, “PETROAN had earlier warned about Dangote’s plans to dominate the downstream sector. We feared the company might use its market power to fix prices, limit competition, and those concerns are now materialising.”
According to him, recent pricing shifts by Dangote were already affecting retailers. “Just yesterday, some of them began selling products at ₦817 per litre.
“That represents a loss of over ₦80 per litre for filling station operators. When you consider the volume of product involved, it becomes clear that, very soon, salaries may not be paid.”
Gillis-Harry described the pricing trend as “a classic price-penetration strategy aimed at driving competitors out of business,” and warned it could lead to widespread closures and job losses if unchecked.
He also urged the Federal Government to allocate at least one million barrels of crude oil to domestic refineries to guarantee consistent local supply and reduce reliance on imports.
In his remarks, Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), said discussions were ongoing to stabilise the market.
“The man on the street is our primary concern, and that is what has driven our recent engagements. We’ve been in marathon meetings over the past week to ensure Nigerians get the best quality petroleum products at the most affordable prices,” he said.