Oil marketers, under PETROAN, have warned against the Dangote refinery plan to distribute fuel directly to filling stations nationwide. The association raised concerns that the policy could lead to job losses and a monopolistic leader.
PETROAN secretary, Joseph Obele stated on Monday that the refinery should be competing globally, not operating in the fuel retail segment. Obele asserts that the production producing 650,000 barrels per day is expected to export more and satisfy domestic demands.
The secretary continued that the company can monopolize the market by fixing prices and limiting competition and exploiting consumers. He adds that the refinery might reduce prices to force other filling station operators to quit the market.
Obele revealed that the policy would cause a huge shutdown of filling stations, resulting in unemployment. He described the refinery’s new gas-powered tankers as a threat to the lives of truck drivers and owners.
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The association revealed that integrating the company’s strategy would affect various stakeholders and also threaten the modular refineries. Among the effects, the association notes reduced business opportunities for truck drivers due to gas-powered tankers.
Also, suppliers of petroleum locally will be negatively impacted by the company’s direct supply to consumers. Additionally, they warned of the effects it poses to telecom companies’ operations and market share.
PETROAN Warns Against Market Monopoly as Dangote Defends Fuel Distribution Strategy
The national president of the organization, Gillis Harry, directs petroleum regulators to implement control mechanisms to prevent monopolization. He stressed that the oil market should be competitive to protect consumers and promote economic efficiency.
According to findings, the new Dangote process will render many investments outdated and defunct. Reacting to this, Dangote company revealed that the scheme aims to reduce fuel prices and improve availability for urban and rural communities.
The firm reassured that the policy will support local economies and increase government revenue.
