Dangote Halts Fuel Discount Scheme Amid Fraud Allegations
The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme following the discovery of widespread abuse by some affiliate marketers and strategic partners.
The company uncovered a scheme in which marketers diverted subsidised petroleum products intended for nationwide distribution to unregistered third parties for profit. The abuse prompted an immediate halt to the discount initiative, originally designed to ensure affordability and a steady supply of fuel across retail outlets.
According to findings by the refinery, some marketers who received discounted allocations were reselling the products directly from the refinery’s tarmac to third-party dealers, often at rates below the official gantry price. This allowed them to exploit the price differential without incurring operational costs such as logistics, retail station management, or regulatory compliance — resulting in quick, illicit profits.
In a letter dated July 13, 2025, and signed by Fatima Dangote, Group Executive Director of Commercial Operations, the refinery announced the suspension of the discount scheme, citing the threat it posed to the sustainability of the company’s operations.
The letter, titled “Suspension of the Strategic Partner Discounted Price”, read in part:
“Over the last few months, Dangote Petroleum Refinery & Petrochemicals (DPRP) has received unprecedented complaints of strategic partners selling their Authority To Collect (ATC) tickets at the refinery below the prevailing Premium Motor Spirit (PMS) gantry product price.
Despite repeated engagements, this malpractice has continued, threatening the integrity and sustainability of our operations. Consequently, DPRP is suspending the discounted price offered to partners effective July 13, 2025, and is working towards restructuring the scheme.”
The refinery stated that some partners were reselling products intended for retail distribution, bypassing retail channels entirely. These products, intended to retail at discounted rates, were instead sold at market prices — distorting the market and frustrating the scheme’s objective of price stability.
Despite the suspension, the company has granted certain concessions. All Product Release Notes (PRNs) already issued at the discounted rate will remain valid for loading, and any partner who had completed payment before the effective date will still receive products at the agreed discounted rate.
The company also reiterated the need for all affiliated retail stations to comply with the recommended pump prices to ensure pricing uniformity and avoid further market distortion.
While the scheme is currently suspended, the company emphasized that the strategic partnership initiative remains intact, and alternative incentive and reward mechanisms are under review and will be communicated in due course.
Oil and gas expert Olatide Jeremiah confirmed the widespread abuse of the discount arrangement, noting that some registered partners had diverted products to independent marketers in exchange for quick profit margins.
“These marketers were granted access to discounted products at the refinery — sometimes at rates as low as N815 per litre, compared to the public price of N825,” he explained. “Instead of selling through their own stations, they offloaded to non-registered marketers for around N819, effectively bypassing retail responsibilities while pocketing a clean profit per litre.”
He added that some of the abuse also extended to products granted on credit under a volume-backed repayment agreement, originally aimed at improving fuel availability nationwide.
According to him, “This credit-based scheme allowed partners to receive more volume than they paid for, to ease supply chain pressure. But instead of meeting their retail obligations, the products were sold off for instant returns.”
Market intelligence from petroleumprice.ng indicates that non-affiliated marketers — who rely solely on fuel imports — have maintained similar pump prices to Dangote’s registered marketers, despite not benefiting from the refinery’s discount scheme.
Last week, at least five private depots adjusted their ex-depot prices in response to Dangote’s pricing review, averaging N820 per litre, down from N835 earlier in the week.
While Dangote Petroleum Refinery did not officially name any defaulting firms, 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, Anthony Chiejina, Group Head of Corporate Communications for Dangote Group, said the refinery is not in conflict with its partners but confirmed that an official statement would be issued in due course.