The Dangote Petroleum Refinery has suspended its fuel discount scheme for strategic partners after uncovering widespread abuse by some marketers. The company said certain affiliate marketers were diverting subsidised petrol meant for retail stations to unauthorized third parties in order to make quick profits.
In a letter issued on July 13, 2025, and signed by the Group Executive Director, Commercial Operations, Fatima Dangote, the company expressed deep concern over the growing fraud. The discounted scheme was meant to help partners stay competitive and provide affordable fuel across Nigeria.
However, investigations showed that marketers were selling their loading rights — known as Authority To Collect (ATC) — to unregistered importers, who then sold the products at higher prices. Some were even selling the fuel directly from the refinery yard (tarmac), below the approved ex-depot rate.
“This has affected the sustainability of our operations,” the company said, announcing the suspension of all discounted supplies to partners effective July 13, 2025.
The Dangote refinery added that while the discount scheme is on hold, outstanding orders and payments made before the suspension would still be honoured at the old discounted rates. All retail stations have also been instructed to stick to the recommended pump prices to prevent further disruption in the market.
Oil and gas expert, Olatide Jeremiah, confirmed the malpractice, saying that marketers exploited the discount to avoid normal business costs, instead reselling the fuel to importers for quick gains. “They were bypassing station sales, avoiding logistics and overhead, and making N4 profit per litre,” he said.
The abuse even extended to credit-based fuel supply meant to boost national distribution, as some partners diverted extra volumes given on loan for retail sales.
Despite the setback, the refinery said the strategic partnership scheme would not be cancelled entirely but restructured. It promised to introduce a more secure and transparent incentive system soon.
Market checks by our correspondent showed that even non-affiliated depots are now selling fuel at similar rates to Dangote’s registered marketers, showing how the scheme’s benefits were leaking into the wider market.
The Dangote refinery, Africa’s largest, launched the discount scheme earlier in the year to support fuel affordability and local distribution. Its strategic partners include major downstream operators like MRS Oil, TotalEnergies, Heyden Petroleum, Ardova, Hyde Energy, and several others.
