IPMAN Rivers Raises Concerns Over Dangote Refinery’s Free Fuel Distribution Plan
The Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Chapter, has expressed concerns over the Dangote Petroleum Refinery’s plan to commence free distribution of petrol and diesel to marketers, dealers, and large consumers nationwide starting August 15, 2025.
According to IPMAN Rivers State Chairman, Tekena Ikpaki, the plan could lead to a monopoly in the downstream sector, undermining the independence and survival of thousands of small and medium-scale operators across the country.
The association is worried that allowing a single entity to dominate the entire fuel supply chain from refining to retail could distort market pricing, limit supply options for retailers, and push out smaller players who lack the resources to compete with large-scale, vertically integrated operations.
To prevent long-term damage to the sector, IPMAN Rivers called on the Federal Government, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other relevant agencies to intervene.
Specifically, the association urged the government to enforce the anti-monopoly provisions of the Petroleum Industry Act (PIA), ensure open and equitable access to depots and supply infrastructure, monitor pricing strategies and supply agreements for fairness and transparency, and provide support and protection for independent logistics providers and marketers.
He said the Dangote Refinery’s initiative is backed by a fleet of 4,000 newly acquired Compressed Natural Gas (CNG)-powered tankers.
However, the Chairman IPMAN Rivers emphasizes that this move should not compromise the integrity and inclusivity of Nigeria’s petroleum distribution landscape.
The association believed that a monopolized system would have far-reaching consequences for the sector, including job losses and economic instability.
The IPMAN concerns highlighted the need for careful consideration and regulation of the Dangote Refinery’s plan to ensure that it does not harm the downstream sector or undermine the livelihoods of thousands of independent marketers nationwide.
The statement reads: “While this move may appear generous on the surface, we must not overlook the broader implications it holds for Nigeria’s downstream sector. According to the refinery, the initiative will be backed by a fleet of 4,000 newly acquired Compressed Natural Gas (CNG)-powered tankers. This unprecedented scale of distribution, if left unchecked, could significantly undermine the independence and survival of thousands of small and medium-scale operators across the country.
“We acknowledge and support the development of domestic refining capacity. However, IPMAN Rivers State, under my leadership, firmly cautions against allowing a single entity to dominate the entire fuel supply chain from refining to retail.
“Such control poses a clear threat to free market competition and opens the door to monopolistic practices that could destabilize the livelihoods of over 10,000 independent marketers nationwide.
“The downstream sector thrives on diversity and accessibility. A monopolized system, regardless of initial incentives or goodwill gestures, will eventually distort market pricing, limit supply options for retailers, and push out smaller players who lack the resources to compete with large-scale, vertically integrated operations.”
IPMAN Rivers Raises Concerns Over Dangote Refinery’s Free Fuel Distribution Plan is first published on The Whistler Newspaper
