Dangote Refinery Suspends Discounted Fuel Supply Scheme over Widespread Abuse
The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme following revelations of widespread abuse by affiliate marketers and strategic partners.
The company discovered that subsidized petroleum products were being diverted and resold at inflated market rates, undermining the program’s core objective of providing affordable fuel across the country.
The discount scheme, initially introduced to support registered marketers in maintaining competitive retail prices amid stiff market conditions, was found to have been abused. Investigations revealed that some affiliates were handing over their Authority to Collect (ATC) loading tickets to unregistered third parties, allowing those marketers to lift products from the refinery at subsidized rates and resell at a profit.
This fraudulent activity prompted the refinery to suspend the scheme effective July 13, 2025. In a formal letter addressed to all strategic partners, Fatima Dangote, Group Executive Director – Commercial Operations, confirmed the suspension, stating that the abuse had become a grave concern affecting the sustainability of the refinery’s gantry operations.
Despite the halt, the refinery has put in place transitional measures to cushion the effect. All Product Release Notes (PRNs) issued before the suspension date at discounted rates will remain valid.
Additionally, any partner who completed payment before July 13 will still receive products at the agreed prices.
The management also re-emphasized that all retail stations must continue to adhere to recommended pump prices to maintain uniformity and prevent further price manipulation in the downstream sector. The company is exploring new incentive and reward schemes, which will be communicated in due course.
Oil and gas analyst Olatide Jeremiah confirmed the development, stating that registered Dangote marketers were bypassing retail responsibilities to sell directly to unregistered marketers. He explained that these marketers would sell to depot owners or other marketers at rates that give them quick profits, often at a slight markup.
Some of the affected strategic 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.
