The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has sounded the alarm over what it calls a “monopoly in disguise” following Dangote Refinery’s adoption of a forward integration strategy, warning that it could wipe out competition, force thousands of filling stations out of business, and cost Nigeria thousands of jobs.

In a strongly worded statement, PETROAN said that with a production capacity of 650,000 barrels per day, Dangote Refinery, one of Africa’s largest, should be positioning itself as a global competitor, not a downstream distributor. Instead, the refinery appears poised to dominate the local petroleum market, cutting out smaller players and disrupting the entire fuel distribution ecosystem.

“This is not just about fuel. It is about fairness, competition, and the survival of thousands of Nigerians whose livelihoods depend on this industry,” said Dr. Billy Gillis Harry, National President of PETROAN.

PETROAN expressed fears that Dangote’s tactics could include price penetration strategies, offering fuel at prices other operators cannot match in the short term—only to later increase prices once competitors are forced out.

“Once the competition is crushed and the market is captured, what stops a monopoly from hiking prices at will?” Dr. Harry asked. “We have seen this playbook before in other sectors. The consequences are always the same—job losses, business closures, and suffering consumers.”

The introduction of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers by Dangote Refinery has further heightened PETROAN’s concerns. While the shift to CNG is seen as a cost-effective and environmentally friendly transportation method, PETROAN warns that it could displace thousands of truck drivers and owners who rely on diesel-powered vehicles for their livelihoods.