Oil Marketers Hold Emergency Meetings over Dangote Refinery’s Nationwide Fuel Distribution Plan

Several oil marketers are holding emergency meetings following the Dangote Petroleum Refinery’s announcement that it will begin nationwide distribution of diesel, premium motor spirit (PMS), and compressed natural gas (CNG) from August 15.

On June 15, Dangote Refinery revealed its plan to commence fuel distribution across the country, a move that has triggered swift reactions from key players in Nigeria’s downstream sector.

Speaking with TheCable on Monday, officials from multiple oil marketers’ associations confirmed that internal consultations are ongoing to deliberate on an appropriate response to what they described as a potentially disruptive development.

A source within the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) disclosed that members are currently engaged in “marathon meetings” following the announcement.

Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), also confirmed that his association had been in continuous discussions since the news broke.

“We will be having another press conference later today,” he said. “It’s now that my other sister associations are waking up to realise that this is a big danger that is going to be part of the entire industry.”

PETROAN has raised concerns that Dangote’s forward integration model could evolve into a monopoly, posing existential risks to independent operators in the sector. “It’ll wipe out businesses,” Gillis-Harry warned.

A senior official within the Independent Petroleum Marketers Association of Nigeria (IPMAN) also confirmed to TheCable that the association had convened a meeting in response to the unfolding situation.

The Dangote Refinery’s decision marks a significant shift in Nigeria’s downstream petroleum landscape and is expected to have far-reaching implications for fuel distribution and pricing dynamics.