Marketers Accuse Dangote Refinery of LPG Market Monopoly

Independent oil marketers in Nigeria have accused the Dangote Petroleum Refinery of monopolizing the market for Liquefied Petroleum Gas (LPG) through secret pricing deals that allegedly favour select companies while shutting out others.

The marketers, who spoke anonymously on Tuesday, claimed that while Dangote officially sells LPG at ₦715 per kilogram, certain preferred companies are receiving secret rebates of up to ₦60,000 per metric tonne — effectively giving them a lower buying rate of about ₦655 per kilogram.

Among the firms said to be benefiting from the covert discounts are Ardova Plc, NIPCO Plc, Rainoil, AA Rano, Algasco, Techno Oil, Sublime Oil, Mezovest Ltd, AYM Shafa, and Borkir Ameogo Pago. One marketer said that for every 1,000 metric tonnes sold, these firms could pocket ₦60 million in rebates — allowing them to sell at the same retail price as everyone else but with zero losses.

“They’re buying cheaper and still selling at ₦715/kg like us. But we’re losing money while they profit. This is killing small businesses,” one marketer said.

The independent marketers are urging the federal government and regulatory bodies to step in and investigate Dangote’s pricing model. They say the current system is making it nearly impossible for non-preferred companies to survive, warning that many small businesses could shut down by year-end.

“This is a monopoly in action,” a marketer added. “If this continues, Dangote will roll out filling stations nationwide and edge us all out.”

The marketers also alleged government complicity in the situation, claiming that Dangote’s influence extends deep into the country’s power structure. They say top political figures, including governors and elite businessmen, are financially invested in the refinery.

“Every major figure in the elite class has a stake in this refinery. That’s why no one is talking,” another marketer alleged. “They’ve already started collecting data from tank farms, tracking loading capacities and storage volumes. It’s all part of a strategy to take over the entire supply chain.”

They warned that within months, Nigerians may begin to see Dangote-branded fuel stations take over inactive ones across the country, backed by a growing fleet of delivery trucks. “He says 4,000 trucks — it could be 10,000. This is bigger than it looks,” one of them said.

The marketers are calling for urgent government intervention to protect competition and prevent the emergence of a full-scale monopoly in Nigeria’s LPG sector.