Some stakeholders in the Petroleum Industry have decried the adoption of a forward integration policy by Dangote’s Refinery, warning that it could lead to a monopoly and result in significant job loss in the country.
A statement by the National Secretary, of the Petroleum Products Retail Outlets Owners Association of Nigeria, (PETROAN) Dr. Joseph Obele on behalf of the National President, Dr. Bily Gilis-Harry warns that the implementation of these tactics which include a pricing penetration could lead to a massive shutdown of filling stations across the country, resulting in widespread job losses.
”This massive refinery, one of the largest in sub-Saharan Africa, is expected to satisfy domestic fuel demand and export surplus products.” ”Dangote plans to gain full monopoly of the downstream sector, which would enable the company to exploit Nigeria’s petroleum consumers. This could lead to higher prices, reduced competition, and decreased economic efficiency.”
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Dr. Gilis-Harry stated that the introduction of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers by the Refinery poses a significant threat to the livelihoods of thousands of truck drivers and owners.
He noted that Compressed Natural Gas, CNG, trucks may offer a lower cost of transporting petroleum products, but a swift shift could lead to widespread job losses in the industry. The PETROAN National President emphasized that competition should always be encouraged to protect consumers and promote economic efficiency.
He further called on the Executive Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Engr. Farouk Ahmed and the Minister of State for Petroleum, Senator Heineken Lokpobiri put in place price control mechanisms to prevent any form of monopoly.
