Nigeria’s oil workers’ union accused the government and fuel marketers on Tuesday of exploiting consumers by not reducing petrol prices in line with falling crude oil prices, and expressed concerns about a new distribution plan by Dangote Refinery that could lead to a monopoly.
Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said that despite crude oil prices dropping from over $80 to around $62 per barrel, petrol prices have only decreased by less than 10 naira per liter. He urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to monitor and publish petrol pump prices to help consumers demand fair pricing.
The union also raised alarm about Dangote Refinery’s plan to distribute petrol using 4,000 compressed natural gas-powered tankers starting August 15, 2025. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) Rivers State chapter warned that this could create a monopoly, threatening jobs and raising prices. Joseph Obele, PETROAN’s spokesperson, said, “The development could lead to a monopoly in disguise and pose a significant job loss threat to Nigeria.”
Related: Rivers Gets Boost as Tinubu Commissions 180MW Power Plant
Stakeholders offered mixed reactions. Some highlighted potential benefits like lower prices and consumer relief, while others, like the Chairman of Rivers IPMAN, Tekena Ikpaki, said yesterday that while the initiative might appear generous on the surface, it poses reduced competition and the sidelining of smaller operators. Energy economist Wumi Iledare cautioned that without regulatory oversight, Dangote’s move could foster a dominant firm oligopoly.
In contrast, Madaki Ameh praised the refinery’s investment as a long-overdue step that could cut pump prices. PENGASSAN proposed a 51:49 percent ownership model for refineries, mirroring the liquefied natural gas sector, to boost efficiency and lower costs. It bears mentioning that the controversy underscores ongoing tensions in Nigeria’s energy sector, as the nation grapples with balancing private investment, public welfare, and effective regulation.
