The management of Dangote Petroleum Refinery and Petrochemicals has announced the immediate suspension of its discounted fuel pricing scheme following revelations of widespread abuse and diversion of products by some affiliated marketers and strategic partners.
In an internal investigation carried out by the refinery, it was discovered that several marketers who were granted access to refined petroleum products at discounted rates—intended to ensure affordability and regular supply across the country had exploited the scheme for personal gain. These marketers, according to findings, had been diverting products to unauthorized third-party dealers, bypassing official distribution channels.
The now-suspended discount scheme was initially designed to support strategic marketers and retail partners in remaining competitive with fuel importers, while stabilising prices and enhancing accessibility for end consumers. However, the initiative reportedly became a loophole for fraudulent practices, as some marketers used their Authority to Collect (ATC) tickets to permit non-accredited dealers to lift fuel directly from the refinery.
Investigations revealed that these diverted products were later resold at near-market prices, thereby evading necessary operational costs such as logistics, retail operations, and regulatory compliance. This manipulation not only undermined the primary purpose of the programme but also destabilised downstream pricing structures.
As a corrective measure, the refinery suspended the scheme effective July 13, 2025. A formal notification of the decision was dispatched to all affected strategic partners on the same day. The letter, signed by Fatima Dangote, Group Executive Director, Commercial Operations, explained that the refinery had issued multiple warnings before taking this decisive action.
The memo, titled “Suspension of the Strategic Partner Discounted Price”, highlighted the growing number of reported violations by partners who were allegedly selling products directly from the refinery premises below the official gantry price, without observing proper market ethics. It also indicated that the decision was made to safeguard the integrity of the refinery’s distribution process and ensure long-term operational sustainability.
Despite the suspension, the refinery assured that all previously approved Product Release Notes (PRNs) would remain valid and could still be honoured. In addition, marketers who had completed payments for fuel before the suspension date would receive their allocations at the previously agreed discounted rates.
The refinery further urged all affiliated retail outlets to adhere strictly to the recommended pump prices to help sustain market balance and prevent further distortions in the fuel distribution chain.
While assuring stakeholders that the strategic partnerships remain intact, the management disclosed that a restructuring of the incentive model was underway. A new framework, aimed at rewarding compliant partners while preventing future abuses, will be unveiled soon.
Industry analyst and energy consultant, Olatide Jeremiah, weighed in on the development, confirming that many of the abuses uncovered by the refinery were already known within industry circles. He explained that some partners had turned the scheme into a profit-maximising venture by offloading products meant for their own retail stations to other marketers at marginal mark-ups.
“In some cases, a marketer might lift fuel at ₦815 per litre under the discounted programme and sell to other depot operators at ₦819. The buyer could then retail it at the official ₦825 price and still make a profit. This completely defeats the purpose of the discount,” Jeremiah noted.
Market intelligence from petroleumprice.ng showed that even non-affiliated marketers were retailing within the same price range as those benefiting from Dangote’s discounted supply, indicating a broader impact of the diversion scheme. As of last week, at least five private depots had adjusted their pump prices from ₦835 to around ₦820 per litre.
Though the refinery has not publicly named the marketers involved in the scheme’s abuse, reliable sources confirmed that its current strategic partners include MRS Oil, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, Techno Oil, TotalEnergies, Garima Petroleum, Sunbeth Energies, Sobaz Nigeria Ltd, Virgin Forest Energy, Sixxco Oil Ltd, NU Synergy Ltd, and Soroman Nigeria Ltd.
When contacted, the Dangote Group’s Head of Corporate Communications, Mr. Anthony Chiejina, declined to comment extensively, stating that more time was needed for an official statement. However, he clarified that there was no rift between the refinery and its strategic partners, only a need to re-evaluate operational protocols to preserve transparency and efficiency.
The suspension of the fuel discount initiative is seen as a bold step by Dangote Refinery in protecting its supply chain integrity and recalibrating its operational model amid rising pressure for transparency in the downstream oil sector.
