Petroleum merchandise entrepreneurs have raised considerations over what they described as makes an attempt by the Dangote Refinery to dominate Nigeria’s downstream oil sector, warning that such a transfer might destabilise the market and push many operators out of enterprise.
They expressed their considerations on the Annual General Meeting of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) held on Thursday, July 31, in Abuja, business leaders urged President Bola Tinubu to intervene and guarantee a degree taking part in subject, significantly because the nation embraces home refining.
NOGASA President, Mr Benneth Korie, stated entrepreneurs remained absolutely supportive of the Dangote Refinery however feared its operations had been more and more being guided by people unfamiliar with the intricacies of the sector.
“So immediately once more, we plead with Mr. President to intervene by advising Dangote to decelerate and play by the foundations of the sport.
“Nobody is against the refinery. If there is any group that supported the Dangote Refinery more than anyone else, it is NOGASA—100%,” Korie stated.
He cautioned that whereas the refinery’s contribution to product provide was welcome, its pricing strategy and direct market technique risked destabilising the ecosystem, particularly for impartial entrepreneurs.
“When sure developments started to unfold, we felt the necessity to supply recommendation on how finest to proceed, though we’ve by no means had the chance for a one-on-one dialogue 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 half, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, warned of the results of a monopolised downstream sector.
He stated, “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, latest pricing shifts by Dangote had been already affecting retailers. “Just yesterday, a few of them started promoting merchandise 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 development as “a classic price-penetration strategy aimed at driving competitors out of business,” and warned it might result in widespread closures and job losses if unchecked.
He additionally urged the Federal Government to allocate at the very least a million barrels of crude oil to home refineries to ensure constant native provide and cut back reliance on imports.
In his remarks, Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), stated discussions had been 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 stated.
