- The marketers were found to be bypassing the distribution chain by allowing importing, non-registered marketers to pick up products from the refinery using their Authority To Collect loading ticket
The Dangote Petroleum Refinery and Petrochemicals has halted its sale of fuel at a discounted price amid the discovery of racketeering involving some of its affiliate marketers and strategic partners.
The refinery stated that the marketers and partners who bought refined petroleum products from it at discounted and subsidised rate were diverting the fuel to unregistered third-party marketers.
It said the discovery of the fraud necessitated the suspension of the fuel price reduction and discounted product scheme aimed at ensuring affordability and a steady supply of clean fuel across retail outlets.
The scheme was originally designed to support Dangote’s registered affiliate marketers in achieving stable profit margins amid price competition from fuel importers, while also guaranteeing nationwide availability of the refinery’s products.
However, the marketers were found to be bypassing the distribution chain by allowing importing, non-registered marketers to pick up products from the refinery using their Authority To Collect loading ticket. This allowed them to make a massive profit due to the price differential without incurring legitimate costs associated with logistics, retail station operations, or administrative compliance, making a fast profit.
The refinery noted that the diverted products were often sold at market rates far above the agreed subsidised prices, effectively defeating the core objectives of the scheme and distorting the downstream market. Miffed by this situation, the refinery directed the suspension of its discount scheme for its customers with effect from July 13, 2025.
The latest directive was disclosed in a letter to all strategic partners issued on July 13, 2025, signed by the Group Executive Director-Commercial Operations, Fatima Dangote, and obtained by our correspondent on Thursday.
The management of Dangote refinery disclosed that some marketers were reselling petroleum products directly from its tarmac at rates below the official gantry price, an act deemed inimical to the long-term sustainability of its operations.
The company said the abuse of the arrangement had become widespread, despite several engagements with erring partners.
The letter titled, “Suspension of the Strategic Partner Discounted Price”, read, “In our drive to ensure the distribution and retail sale of DPRP refined petroleum products across your service stations nationwide, DPRP commenced the strategic partnership scheme with the sole aim of ensuring consumers nationwide have access to affordable and clean petroleum products.
“Unfortunately, over the last few months, DPRP has been receiving unprecedented complaints of Strategic Partners (Partners) selling their ATCs at the refinery (Tarmac) below the prevailing PMS gantry product price. Whilst we have engaged Partners severally on this, it has become evident that this has become an area of grave concern to DPRP as it affects the sustainability of our gantry operations.
“To this end, DPRP Management is suspending the discounted price offered to Partners effective 13th July 2025 and working towards restructuring the scheme.”
The refinery, however, gave certain conditions to ensure continued off-take of products, noting that all outstanding Product Release Notes issued at the discounted partner rate would remain valid for loading. Also, any partner who had completed payment processes before the effective suspension date would still receive products at the agreed discounted rate
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