Dangote Refinery Shuts Out Unregistered Marketers on Product Sales

Dangote Refinery Shuts Out Unregistered Marketers on Product Sales   The Dangote Petroleum Refinery has halted the sale of its refined products to unregistered marketers following what it described as widespread diversion and resale by unauthorised dealers. The refinery said its internal checks revealed that products meant for registered retail outlets were being diverted to third parties, who resold them at inflated prices, undermining its supply framework and price stability objectives. Management explained that the decision was taken to protect the integrity of its distribution system and ensure that petroleum products reach genuine outlets for onward sales to consumers at fair market prices. The company noted that some affiliated marketers were abusing the supply arrangements, taking advantage of discounts and direct allocations only to divert products for profiteering. This development follows similar action taken by the refinery earlier in the year when it suspended its discount scheme after discovering that some partners were exploiting the programme for resale rather than retail supply. The refinery has since emphasised that only marketers duly registered with relevant regulatory agencies will continue to have access to its products. The announcement has generated sharp reactions from industry stakeholders. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) dismissed the allegations of diversion as misleading and demanded that Dangote provide evidence or issue a retraction. On the other hand, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged its members to complete the necessary registration process in order not to be cut off from product supplies. Industry analysts warn that the standoff could disrupt supply across parts of the country and create upward pressure on pump prices. Given the refinery’s central role in Nigeria’s domestic fuel market, any restrictions on product access could affect thousands of filling stations, especially those operated by independent marketers serving rural and semi-urban areas. Observers also recall that when the refinery temporarily suspended sales in naira due to exchange rate concerns, the downstream market experienced volatility and pricing pressure. They caution that a prolonged disagreement over distribution could lead to similar consequences for consumers. With a capacity of 650,000 barrels per day, the Dangote Refinery is considered one of the most strategic projects for Nigeria’s energy security, aimed at reducing reliance on imported petroleum products. However, the ongoing dispute highlights the challenges of balancing commercial interests, regulatory oversight, and market realities as the refinery consolidates its role in the country’s downstream sector.