Dangote Refinery Halts Discounted Fuel Scheme Over Widespread Diversion Scandal

The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme following the uncovering of a widespread racket involving some of its affiliate marketers and strategic partners diverting subsidised fuel for profit.

An internal investigation revealed that certain marketers who were granted access to discounted refined products—intended to ensure nationwide affordability and availability—had been re-routing truckloads of fuel to unregistered third-party marketers. These marketers then sold the products at higher market rates, undermining the scheme and distorting the downstream market.

The discount program, launched to help registered affiliate marketers compete with importers and maintain healthy profit margins, was being abused as marketers used their Authority To Collect (ATC) tickets to allow outside players to collect products directly from the refinery without bearing the associated costs of logistics or retail operations.

In a letter dated July 13, 2025, signed by Group Executive Director, Commercial Operations, Fatima Dangote, the company confirmed the suspension of the discounted scheme. The refinery noted that repeated complaints were received about marketers reselling petroleum directly from its tarmac at prices below the official gantry rate.

“Over the last few months, DPRP has been receiving unprecedented complaints of Strategic Partners selling their ATCs at the refinery (Tarmac) below the prevailing PMS gantry product price… This has become an area of grave concern,” the letter read.

While the scheme is suspended, the refinery granted concessions: all outstanding Product Release Notes (PRNs) issued at discounted rates remain valid, and any partner who had completed payment before the suspension date will still receive products at the agreed price.

Retail stations are also expected to continue selling at the recommended pump price to prevent further market manipulation.

Dangote Refinery emphasized that the strategic partnership program remains intact and would not be scrapped entirely, noting that alternative incentive structures are being considered.

Oil and gas expert, Olatide Jeremiah, confirmed the fraudulent practices, saying marketers with loading access had been flipping the discounted products for quick profits. He explained that instead of selling at their stations, some marketers resold to other operators or depot owners at just under market prices, making instant gains without incurring overhead.

“For example, if Dangote gives fuel at N815 per litre, below the public price of N825, these marketers resell at N819. They make a quick N4 profit per litre while still allowing the buyer to sell at market price,” he explained.

He also revealed that marketers misused a separate credit-based volume scheme meant to enhance distribution. Rather than use the extra supply as intended, some sold it off immediately, leaving Dangote with unpaid balances and a disrupted retail strategy.

Market data from petroleumprice.ng showed that despite the removal of subsidised rates, non-affiliated marketers continue to sell fuel at similar prices to Dangote’s partners—suggesting that the diverted discounted products may still be circulating.

While Dangote has yet to publicly name any of the defaulting marketers, known 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 reached for comment, Dangote Group’s Head of Corporate Communications, Anthony Chiejina, declined to elaborate immediately, stating only that the refinery was not in conflict with its marketers and would provide more details later.