LAGOS, NIGERIA – Dangote Petroleum Refinery and Petrochemicals has temporarily suspended its discounted fuel supply scheme after uncovering alleged fraudulent practices involving some of its affiliate marketers. The refinery claims that subsidised refined petroleum products, intended to ensure affordability and stable supply, were being diverted and resold for profit.
Investigations by the refinery revealed that certain marketers, who received products at a reduced rate, were allegedly re-routing loaded trucks to unregistered third-party marketers. This allowed non-registered marketers to pick up products from the refinery using the legitimate partners’ “Authority To Collect” loading tickets, thereby profiting from the price differential without incurring the associated logistical, retail, or compliance costs. The diverted products were often sold at market rates significantly higher than the agreed discounted prices, undermining the scheme’s original objectives.
In a letter to all strategic partners, signed by Group Executive Director-Commercial Operations, Fatima Dangote, and dated July 13, 2025, the refinery announced the immediate suspension of the discounted price offer. The refinery management expressed concern that some marketers were reselling products directly from its tarmac below the official gantry price, an act deemed detrimental to the long-term sustainability of its operations.
The scheme was initially launched to support Dangote’s registered affiliate marketers in maintaining profit margins against competition from fuel importers and to guarantee nationwide availability of the refinery’s products. Despite several engagements with defaulting partners, the company noted that the abuse of the arrangement had become widespread.
While the discount scheme is suspended, the refinery has made concessions for continued product off-take. All outstanding Product Release Notes issued at the discounted partner rate remain valid for loading, and any partner who completed payment processes before the suspension date will still receive products at the agreed discounted rate. The company also reiterated that all retail stations must continue to adhere to recommended pump prices to ensure market uniformity.
An oil and gas expert, Olatide Jeremiah, corroborated the allegations, stating that some affiliated marketers were diverting products, including those provided on credit under volume-backed repayment agreements, for quick profit to non-registered marketers. He explained that instead of selling at their stations, these marketers would sell at a slightly higher price than their discounted rate to other marketers and depot owners, thereby bypassing operational expenses.
Dangote Refinery did not name the defaulting marketers, but its list of strategic partners includes 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.
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