The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has pushed back against plans by the 650,000 barrels per day (bpd) Dangote refinery to start distributing its petroleum products to outlets across the country.

Resistance to the plans emerged following an announcement by the plant that it was set to expand its fuel distribution to all corners of Nigeria over the weekend.

PETROAN responded to the announcement on June 16 in a statement signed by its public relations officer Joseph Obele, who said that the move could lead to a monopoly in disguise, according to The Punch.

The group also added that the decision to increase distribution could potentially cause significant job losses.

The statement continued: “With a production capacity of 650,000 barrels per day, PETROAN argues that Dangote Refinery should be competing with global refineries, not operating as a distributor in the downstream sector”. The group also noted that the refinery, among the largest in sub-Saharan Africa, was “expected to satisfy domestic fuel demand and export surplus products”.

Notably, PETROAN had previously raised alarms over Dangote’s alleged plans to dominate the downstream sector, claiming that the company could use its market power to fix prices, exploit customers and limit competition, claiming it had already done in other sectors.

The group expressed that Dangote’s tactics could include 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,” which could cause a “massive shutdown of filling stations across Nigeria”.

Moreover, PETROAN also warned of the introduction of 4,000 new compressed natural gas (CNG)-powered tankers that Dangote had organised, noting that the decision posed a “significant threat to the livelihoods of thousands of truck drivers and owners”.

The organisation has also warned that stakeholders, including modular refineries, could be threatened by Dangote’s dominance, and concluded that: “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”.