Raphael Kanu
The Dangote Petroleum Refinery has suspended its discounted fuel supply program after uncovering a major diversion scheme involving some of its affiliate marketers and strategic partners.
The program, which offered reduced prices to approved marketers to ensure nationwide fuel affordability, was reportedly abused as marketers sold the discounted products to unregistered third-party dealers for quick profit.
According to investigations, marketers exploited the system by using their Authority To Collect (ATC) tickets to obtain products at discounted rates and then re-sell them at or near market price without incurring operational costs such as logistics and retail management.
“This malpractice defeats the purpose of the scheme and poses a serious threat to the sustainability of our operations,” the company said.
In a letter dated July 13, 2025, signed by Fatima Dangote, Group Executive Director for Commercial Operations, the company announced the immediate suspension of the discounted program.
“Despite several engagements with defaulting partners, the abuse persists. Therefore, DPRP is suspending the discounted price for partners effective July 13, 2025, while we work on restructuring the scheme,” the statement read.
However, the refinery allowed concessions for transactions already completed before the suspension date. Outstanding Product Release Notes will remain valid, and partners who completed payment prior to the cut-off date will still receive products at the agreed discounted rate.
Dangote stressed that while the current program is halted, the strategic partnership remains intact and will be reviewed to introduce new incentive measures.
Industry experts say the fraudulent practice involved partners reselling at slightly higher rates to other marketers, bypassing compliance costs.
“For instance, if Dangote offered products at ₦815 per litre, some partners flipped them at ₦819 to other marketers instead of retailing through their stations, making quick gains while distorting the market,” said energy analyst Olatide Jeremiah.
Checks reveal that non-affiliated marketers and depots have continued to peg their ex-depot prices close to Dangote’s rate, averaging ₦820 per litre this week, down from ₦835 last week.
While the company did not disclose the names of marketers involved, Dangote’s partner list includes major players such as MRS Oil, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, TotalEnergies, Techno Oil, among others.
The suspension underscores ongoing challenges in Nigeria’s downstream sector, where price manipulation and market distortions persist despite efforts at deregulation.