Dangote halts fuel discount program due to diversion scheme.

Dangote Petroleum Refinery has put its discounted fuel supply program on hold following the discovery of a widespread product diversion scheme involving its affiliate marketers and strategic partners.

The refinery's management revealed that some partners had been illegally reselling refined products, which were intended for subsidized distribution, to unregistered marketers for profit.

This misconduct led to the immediate suspension of the discount scheme on July 13, 2025. Initially, the initiative aimed to assist registered marketers by providing refined petroleum products at below-market prices to ensure competitive pricing and consistent supply across Nigeria. However, investigations indicated that these marketers were permitting unregistered third parties to use their Authority to Collect (ATC) loading tickets, enabling them to take products without following retail protocols and profiting without incurring operational expenses. In a memo signed by Fatima Dangote, Group Executive Director of Commercial Operations, the company expressed concerns that these practices were jeopardizing its operations and market integrity. "Recently, the Dangote Petroleum Refinery has received an unprecedented number of complaints regarding strategic partners selling their ATCs at prices below the current PMS gantry product rates," stated the letter. A major aspect of this malpractice involved the resale of discounted products at market prices exceeding the refinery's subsidized rates, allowing partners to profit from the price difference. For instance, while Dangote offered premium motor spirit (PMS) to affiliates at ₦815 per litre, marketers were found selling it at ₦819 to unregistered buyers—just under the official price of ₦825—yielding an immediate profit of ₦4 per litre.

Industry analyst Olatide Jeremiah confirmed these findings, noting that the scheme was further undermined by the improper use of Dangote's credit-based volume system. This program allowed partners to receive supplemental volumes on credit to enhance nationwide distribution. "Instead of using these products at their retail locations, these partners diverted them to unregistered buyers, profiting quickly," Jeremiah explained. While the refinery has ceased new sales at the partner rate, it will honor all previously approved Product Release Notes (PRNs).

Partners who completed payments before the July 13 suspension will continue to receive products at the discounted prices. Despite the suspension, Dangote emphasized that the strategic partnership program will remain in place but will undergo necessary restructuring. The company is also formulating a new incentive and rewards system for loyal partners. Furthermore, the Dangote Refinery reminded all retail stations to adhere to the recommended pump prices to avoid further market disruption. Market analysis revealed that some independent depot operators had adjusted their prices in line with Dangote's changes, now selling at an average of ₦820 per litre, down from ₦835 earlier in the week.

The company chose not to publicly identify the offending marketers; however, its current list of strategic partners includes MRS Oil, TotalEnergies, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, Techno Oil, and Sobaz Nigeria Ltd. Anthony Chiejina, Group Head of Corporate Communications, stated that the refinery is not at odds with marketers but is taking corrective measures to ensure the sustainability of its operations.