The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel pricing scheme following the discovery of fraudulent activities by some affiliated marketers and strategic partners.
An internal investigation by the refinery uncovered that several marketers, who were granted access to refined petroleum products at discounted rates meant to ensure affordability and regular supply nationwide, had been diverting the products to unauthorized third-party dealers.
The discount initiative was originally established to help affiliated marketers remain competitive against importers, while also making fuel more accessible to consumers across the country.
However, the scheme was reportedly abused, with marketers using their Authority to Collect (ATC) tickets to allow non-partnered importers to collect fuel directly from the refinery.
These products were then resold at market prices, bypassing legitimate expenses such as logistics, retail operations, and compliance procedures.
The manipulation undermined the core purpose of the initiative and disrupted pricing stability in the downstream sector.
In response, the refinery halted the scheme effective July 13, 2025.
A formal notice conveying the suspension was issued to strategic partners on the same date, signed by Fatima Dangote, Group Executive Director for Commercial Operations.
The notice stated that despite repeated warnings, some partners continued to resell products below the official gantry price directly from the refinery tarmac, threatening the sustainability of the refinery’s operations.
The letter, titled “Suspension of the Strategic Partner Discounted Price,” noted a growing number of complaints over this practice and explained that the company would restructure the scheme to prevent further abuse.
Despite the suspension, the refinery confirmed that all previously approved Product Release Notes (PRNs) at the discounted rate would remain valid for loading.
In addition, any partner that had completed payment before the suspension date would still receive products at the discounted price.
The refinery also reiterated the need for all retail outlets to adhere to the recommended pump price in order to maintain market stability.
“The strategic partnership remains intact,” the refinery emphasized, adding that it is exploring alternative incentive schemes for compliant partners, which would be announced soon.
Industry expert Olatide Jeremiah affirmed the refinery’s findings, stating that affiliated marketers had been reselling discounted fuel to unauthorized traders for quick gains.
He explained that some partners had even misused credit arrangements—meant to boost fuel distribution—by selling extra volumes meant for retail stations to other marketers.
According to him, “Instead of selling at their own outlets, they offload the discounted products to other marketers or depot operators, often at a slight markup. For example, if they get the product at N815 per litre, they sell at N819, making a quick profit, while the final seller can still retail it at the official N825 per litre.”
Market data from petroleumprice.ng indicated that non-affiliated fuel marketers continued to sell within the same pricing band as Dangote’s registered partners, despite not enjoying subsidized supply.
At least five private depots were observed to have adjusted their prices to around N820 per litre last week, down from N835 earlier in the week.
Although the refinery has not publicly named the marketers involved in the scheme abuse, it is understood that current strategic partners include firms such as 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 reached for comments, Dangote Group’s Head of Corporate Communications, Anthony Chiejina, said he would need more time to respond officially, but clarified that there was no dispute between the refinery and its partners.
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