PETROAN, NUPENG Strike Over Dangote Fuel Monopoly Fears

 


PETROAN members protesting outside Dangote Refinery with signs against monopoly practices



Nigerian fuel station owners and petroleum workers began a major industrial action on Monday that threatens nationwide fuel shortages. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) will suspend operations for three days starting Tuesday . This coincides with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) strike that began Monday .

Both groups protest the Dangote Refinery's new direct fuel distribution model. The refinery imported 4,000 Compressed Natural Gas (CNG) trucks to supply stations directly . PETROAN calls this a monopolistic practice that could eliminate smaller operators .

PETROAN President Billy Gillis-Harry announced the action after emergency meetings. He said the suspension would be peaceful and lawful . The group advocates for healthy competition instead of monopoly in the petroleum sector .

Gillis-Harry warned that Dangote's aggressive business strategy could push private depot owners, modular refinery operators, marketers, and transport operators out of business . He said this would trigger massive unemployment across Nigeria .

The association president compared the situation to Dangote's dominance in the cement industry. He called initial monopoly strategies "Father Christmas promises" that seem beneficial short-term but harm competition long-term .

NUPENG's strike began Monday over similar concerns. The union opposes what it calls anti-union labor practices linked to Dangote's new CNG trucks . Both actions could seriously disrupt fuel supply across Nigeria .

Gillis-Harry called for government intervention from President Bola Tinubu and petroleum officials . He urged regulators to prevent potential hardship from fuel shortages . The association asked station owners not to discipline absent pump attendants .

Most pump attendants at PETROAN stations are NUPENG members. They will join the strike action . PETROAN will deploy a 120-person compliance team to protect member facilities during the shutdown .

Dangote Refinery says its direct distribution program aims to eliminate logistics costs. The company claims it will enhance energy efficiency and support Nigeria's economic development . The new CNG trucks represent a N720 billion investment in Nigeria's downstream sector .

The Independent Petroleum Marketers Association of Nigeria (IPMAN) also plans to join the action. IPMAN's Western Zone will shut down operations starting Monday . IPMAN Chairman Oyewole Akanni said Dangote's move threatens member businesses .

Akanni noted IPMAN members operate over 4,000 trucks. He warned that many drivers could lose their jobs . He argued Dangote's direct distribution violates the Petroleum Industry Act .

Industry analysts say the conflict highlights growing tensions between established marketers and the new refinery. Dangote Petroleum Refinery is Africa's largest with 650,000 barrels per day capacity . It began direct fuel distribution to stations on August 15 .

PETROAN claims Dangote wants to control both production and retail distribution . The association says this vertical integration could destabilize the sector . Marketers fear they cannot compete with Dangote's pricing structure .

The petroleum retailers group urges regulators to implement price controls . They want measures that prevent monopolistic practices in the downstream sector . PETROAN recommends strengthening market regulators and guaranteeing crude supply to local refineries .

As consultations continue, the outcome remains uncertain. The government has not yet responded publicly to the crisis . Fuel shortages may develop if strikes continue beyond initial periods .

The situation affects all petroleum product users across Nigeria. Both associations say they act to protect workers and ensure fair competition . They promise lawful and peaceful actions despite the potential disruption .

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