On June 15, 2025, Dangote Refinery announced it would commence direct supply of petrol (PMS) and diesel to large-scale users—marketers, manufacturers, telecoms, aviation and others—bypassing traditional depots and intermediaries. To support this, the company plans to deploy 4,000 CNG-powered tankers nationwide.
1. NOGASA (Natural Oil & Gas Suppliers Association of Nigeria)
Led by President Benneth Korie, NOGASA strongly rejects the new model, warning that it risks destabilizing the downstream sector and could lead to mass job losses for suppliers, tanker operators, and fuel depot owners.
The association may even suspend operations if Dangote does not revert to supplying through existing intermediaries. A general meeting is scheduled for July 31 to decide on next steps.
2. PETROAN (Petroleum Products Retail Outlets Owners Association of Nigeria)
PETROAN warns the scheme represents a monopoly in disguise, calling for unrestricted access to distribution so that independent retailers aren’t marginalized.
3. IPMAN (Independent Petroleum Marketers Association of Nigeria)
IPMAN cautions against allowing one vertically integrated company to control refining through retail, arguing this could undermine competition and hurt small-scale marketers. They urge regulators to enforce anti-monopoly provisions under the Petroleum Industry Act (PIA).
Supplier groups argue that the current model provides livelihood for thousands of workers and intermediaries. Disrupting this could lead to widespread unemployment and ghost routes in the supply chain.
Industry analysts note that supply inefficiencies—storage, transportation, logistics—account for up to 30% of fuel costs. Dangote’s integration could drive down prices for consumers, though at potential cost to intermediaries.
There are broader fears of power concentration in one private firm reminiscent of past controversies in other sectors.
NOGASA will decide by July 31 whether to suspend lifting petrol, seeking direct access to Dangote supply instead of end-user bypass.
Regulators like NMDPRA and the Federal Government are being urged by IPMAN and others to intervene to guard against monopolistic concentration.
Market monitors will keep watching for signs of pricing distortions, as seen in earlier trends where Dangote’s entrance triggered a price war, pushing pump prices down to around ₦860 per litre in Lagos.
