Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme after uncovering widespread abuse by affiliate marketers and strategic partners allegedly diverting subsidised petroleum products for illicit profit.
According to an internal investigation, some marketers granted discounted products meant for retail outlets were found to have diverted truckloads of fuel to unregistered third-party dealers.
These marketers reportedly exploited their Authority To Collect (ATC) loading tickets to allow non-registered importers to lift products directly from the refinery—bypassing retail operations and overhead costs—then resell at near-market prices for quick gains.
The discount scheme was originally designed to support Dangote’s registered partners by offering cheaper products to enable competitive pricing and ensure availability nationwide.
However, the abuse undermined those goals and distorted market dynamics.
In response, the refinery officially suspended the scheme effective July 13, 2025.
This was conveyed in a letter signed by Fatima Dangote, Group Executive Director of Commercial Operations, and addressed to all strategic partners.
The letter, titled “Suspension of the Strategic Partner Discounted Price”, noted that Dangote had received “unprecedented complaints” about some partners reselling products from its tarmac below the official gantry price.
Despite several warnings, the malpractice persisted, threatening the sustainability of the scheme.
“As this practice continues to threaten the integrity of our operations,” the letter stated, “DPRP Management is suspending the discounted price offered to partners and is working towards restructuring the scheme.”
While the discount program is paused, Dangote clarified that existing Product Release Notes (PRNs) issued at discounted rates remain valid. Any marketer who completed payment before July 13 will still receive products at the agreed prices.
Retail stations are also expected to maintain recommended pump prices to prevent further market manipulation.
An oil and gas analyst, Olatide Jeremiah, confirmed the scheme had been exploited for personal gain.
He said affiliate marketers were reselling discounted products to independent importers or depot operators instead of distributing through approved retail channels.
“For example, if Dangote offers products at N815 per litre while the official market price is N825, some marketers would sell at N819 directly from the depot, avoiding operating costs and making a quick N4 profit per litre,” he said.
He also disclosed that certain marketers were abusing credit-backed volume agreements meant to boost supply, reselling extra volumes to outsiders instead of retailing as intended.
Market checks by petroleumprice.ng showed that even non-affiliated marketers, who buy fuel at standard import prices, have recently matched Dangote’s discounted rates, further confirming price manipulation.
Several private depots reportedly dropped ex-depot prices to N820 per litre last week, down from N835.
Though the company has not named any violators, Dangote’s list of strategic partners includes major downstream players such as MRS Oil, Ardova Plc, TotalEnergies, Heyden Petroleum, and Techno Oil, among others.
In a brief comment, Dangote Group’s Head of Corporate Communications, Anthony Chiejina, said the company is not in conflict with any marketer but requested time to issue an official response.
Despite the current suspension, Dangote Petroleum Refinery emphasized that the partnership scheme remains in place and will be restructured.
The company is also exploring new incentive and reward programs to support loyal partners.