Dangote suspends fuel discount scheme over alleged fraud

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Dangote Suspends Fuel Discount Scheme Over Alleged Fraud


The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme following revelations of abuse by some affiliate marketers and strategic partners.

An internal investigation revealed that certain marketers, granted access to discounted fuel meant to promote affordability and stable supply, were instead diverting products to unauthorized third-party dealers. These marketers allegedly used their Authority To Collect (ATC) tickets to allow unregistered importers pick up products directly from the refinery, bypassing costs like logistics and compliance, and profiting from the price difference.

This misconduct prompted the refinery to halt the discount scheme on July 13, 2025, as it was undermining the initiative’s original goal — supporting affiliated retailers while ensuring nationwide product availability. The refinery observed that the diverted products were being sold at market rates significantly higher than the subsidized prices, further distorting the downstream sector.

In a letter dated July 13 and signed by the Group Executive Director of Commercial Operations, Fatima Dangote, the company informed strategic partners of the scheme’s suspension, citing widespread abuse despite prior warnings. The letter emphasized that the resale of fuel below gantry prices at the refinery’s tarmac jeopardizes the long-term sustainability of its operations.

While the discount program has been suspended, existing Product Release Notes (PRNs) and payments made before the effective date will still be honored. The company also urged all retail partners to maintain the recommended pump prices to prevent further market disruptions.

Dangote Petroleum Refinery stressed that it still values its partnership with strategic marketers and is exploring new incentive models that will be announced in due course.

Commenting on the matter, oil and gas expert Olatide Jeremiah confirmed that some affiliated marketers were selling their loading slots and reselling products to other dealers, bypassing agreed retail channels and making illicit profits. He added that this issue also involved misuse of products given on credit, which were meant to enhance national distribution.

For instance, marketers who bought fuel at Dangote’s discounted rate of ₦815 per litre were reportedly selling it at ₦819 per litre to third-party marketers — undercutting the gantry price while avoiding retail costs — and still leaving enough profit for resellers who then sold at ₦825 per litre, the standard market rate.

Checks on petroleumprice.ng confirmed that even marketers who don’t receive Dangote’s discounts are now selling fuel at comparable prices, reflecting the ongoing manipulation of the market. Five private depots were seen adjusting their ex-depot prices to match Dangote’s recent pricing — down to ₦820 per litre from ₦835 earlier in the week.

Although Dangote Refinery did not disclose the names of erring marketers, its current strategic partners include MRS Oil, Ardova Plc, Hyde Energy, Heyden Petroleum, TotalEnergies, Garima Petroleum, Sunbeth Energies, Sobaz Nigeria Ltd, Virgin Forest Energy, NU Synergy Ltd, Techno Oil, Optima Energy, and Soroman Nigeria Ltd.

When contacted, Dangote Group's Head of Corporate Communications, Anthony Chiejina, stated that while the refinery is not in conflict with any marketers, he would need more time to issue an official response.

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