Dangote suspends fuel discount for marketers amid diversion allegations

Dangote suspends fuel discount for marketers amid diversion allegations 

Dangote Petroleum Refinery and Petrochemicals says it has uncovered a fraudulent act involving some of its affiliate marketers and strategic partners who have been diverting subsidised refined petroleum products for higher profit.

This, it said, necessitated the suspension of its fuel delivery discount being enjoyed by all its markers.

It said certain marketers who were offered discounted products, designed to ensure affordability and constant supply across retail outlets, had been rerouting the loaded trucks to unregistered third-party marketers.

Dangote said the strategy was originally designed to help its registered affiliate marketers maintain steady profit margins in the face of price competition from petroleum importers while also ensuring nationwide availability of the products.

However, the marketers were reportedly evading the distribution network by letting non-registered marketers to pick up products from the refinery using their Authority To Collect loading ticket.

This allowed them to profit quickly by taking advantage of the price difference without incurring legitimate costs associated with logistics, retail station operations, or administrative compliance.

The refinery saw that diverted products were frequently sold at market rates far higher than the agreed-upon subsidised pricing, essentially undermining the scheme’s basic objectives and distorting the downstream market.

Miffed by this situation, the refinery directed the discontinuation of its discount offer for its clients with effect from July 13, 2025.

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The latest direction was reported in a letter to all strategic partners issued on July 13, 2025, written by the Group Executive Director of Commercial Operations, Fatima Dangote, and acquired by our correspondent on Thursday.

The Dangote refinery’s management disclosed that some marketers were reselling petroleum products directly from its tarmac at prices lower than the official gantry price, which was deemed detrimental to the long-term viability of its operations.

Dangote refinery did not name any of the defaulting marketers.

The refinery currently has strategic partnerships with MRS Oil, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, and Techno Oil.

Others are TotalEnergies, Garima Petroleum, Sunbeth Energies, Sobaz Nigeria Ltd, Virgin Forest Energy, Sixxco Oil Ltd, NU Synergy Ltd, and Soroman Nigeria Ltd.

The company, which launched the discounted pricing scheme to ensure nationwide access to affordable and clean petroleum products, stated that abuse of the arrangement had become widespread, despite several engagements with errant partners.

The letter titled “Suspension of the Strategic Partner Discounted Price” read, “In our drive to ensure the distribution and retail sale of DPRP refined petroleum products across your service stations nationwide, DPRP commenced the strategic partnership scheme with the sole aim of ensuring consumers nationwide have access to affordable and clean petroleum products.

“Unfortunately, over the last few months, DPRP has been receiving unprecedented complaints of strategic partners (partners) selling their ATCs at the refinery (Tarmac) below the prevailing PMS gantry product price. Whilst we have engaged partners severally on this, it has become evident that this has become an area of grave concern to DPRP, as it affects the sustainability of our gantry operations.

“To this end, DPRP Management is suspending the discounted price offered to partners effective 13th July 2025 and working towards restructuring the scheme.”

The refinery, however, provided significant concessions to ensure continuing off-take of products, stating that all outstanding Product Release Notes issued at the discounted partner rate would remain valid for loading.

Also, any partner who had completed payment processes prior to the effective suspension date would continue to receive products at the agreed-upon discounted cost.

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DPRP maintains that the strategic partnership is still relevant and will not be terminated. The company is “judiciously exploring other incentive/reward schemes” for its strategic partners, which will be communicated in due course.

An oil and gas expert, Olatide Jeremiah, confirmed that some affiliate marketers with loading access at the Dangote refinery were diverting products to non-registered companies.

He said, “The information is true. It is the affiliated marketers to Dangote who have the ticket to load products at the refinery who are the ones selling it to other marketers, basically to make a quick profit. Dangote has a discount scheme for its customers so that they can make money from the sales of petroleum products at their stations.

“So instead of selling it at the station, they would sell it to other marketers and depot owners below the normal price at the gantry but at the price range with the amount importing marketers are selling. For instance, if Dangote is giving its registered customers its products at a discounted price of N815, below the publicly announced price of N825. The marketers are now selling at N819, bypassing other expenses and slow sales and making a quick profit of N4 per litre, and still have enough margin for the receiving marketer to sell at the normal rate of N825 per litre.

“This is also different from extra products received on credit to ensure adequate supply across the nation. There is an agreement with Dangote allowing its partners to receive volumes above the amount paid for so that they can sell at a particular rate and refund them.

“This was to ensure circulation at retail stations. But these marketers would receive the products and sell them immediately to unregistered marketers. So they have suspended the scheme and are selling at the normal rate, but they said it would be restructured.”

Last week, at least five privately owned depots were observed to have aligned their ex-depot prices with the Dangote refinery’s latest price adjustment, selling at an average of ₦820 per litre, down from ₦835 per litre earlier in the week.

Dangote suspends fuel discount for marketers amid diversion allegations