The Dangote Petroleum Refinery has suspended its discounted fuel supply scheme after discovering that some affiliate marketers were diverting subsidised fuel for quick profits.
The company said the marketers, who were supposed to sell the discounted fuel at registered retail stations, were instead reselling the products to unregistered marketers. These illegal sales took place directly at the refinery grounds, allowing the marketers to bypass official costs and make fast profits.
“This action has affected the sustainability of our operations,” the refinery said in a letter signed by Fatima Dangote, Group Executive Director of Commercial Operations, dated July 13, 2025. “It has become an area of grave concern.”
The discount scheme was originally created to help registered marketers stay profitable while offering affordable fuel to Nigerians. However, the refinery said the abuse had become widespread, with some partners selling fuel below the official price to unauthorized third parties.
An oil and gas expert, Olatide Jeremiah, confirmed the malpractice. He explained, “Instead of selling at their filling stations, some partners resell their discounted fuel to other marketers. They make a profit of N4 per litre without running a retail station.”
Jeremiah also noted that some marketers abused credit agreements.
“Dangote allows partners to receive extra fuel on credit to boost national supply. But some marketers sell these products immediately instead of distributing them properly,” he said.
As a result of these actions, Dangote Refinery has suspended the scheme and returned to normal pricing from July 13. The company said it would restructure the program to prevent future abuse.
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Despite the suspension, Dangote has assured that all pending transactions made before July 13 at the discounted rate will be honoured.
“All existing Product Release Notes at partner prices will remain valid for loading,” the company stated.
Dangote has also asked all retail stations to follow the recommended pump prices to avoid market distortion.
The company stressed that it is not ending the strategic partnership entirely.
“We are exploring other incentive and reward schemes for our partners,” the refinery said.
Meanwhile, a market survey showed that non-affiliated marketers who rely on imported fuel are now selling at nearly the same price as Dangote’s registered partners. Several private depots were selling at N820 per litre last week, a drop from N835.
Although Dangote did not name the marketers involved, its known partners include MRS Oil, Heyden Petroleum, Ardova Plc, TotalEnergies, Hyde Energy, Techno Oil, and others.
Anthony Chiejina, Head of Corporate Communications for Dangote Group, declined to comment immediately but said the refinery is not in any dispute with its marketers.