The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme after uncovering a growing racket involving affiliate marketers and strategic partners who were diverting subsidised petroleum products for profit.

In a letter dated July 13, 2025, and signed by Fatima Dangote, Group Executive Director, Commercial Operations, the company expressed dismay over the abuse of the discounted pricing initiative, stating that the scheme had been grossly undermined by affiliates selling products to unregistered third-party marketers in violation of agreed terms.

“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,” the refinery stated.

“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… it has become evident that this has become an area of grave concern to DPRP as it affects the sustainability of our gantry operations.”

The scheme, originally designed to help registered affiliate marketers maintain profit margins amid fierce competition from importers and ensure national product availability, was being circumvented by the very partners it sought to empower.

Investigatons by the refinery revealed that certain partners had been re-routing loaded trucks using their Authority To Collect (ATC) loading tickets, allowing unregistered marketers to lift products at discounted rates without incurring legitimate logistics or operational expenses.

These diverted products were then sold at open market rates far above the agreed subsidised prices, defeating the scheme’s purpose and distorting market pricing.

Suspension of discount

As a result, the discounted price arrangement was suspended with effect from July 13, 2025, pending a full restructuring of the programme.

The refinery noted that while the discount scheme has been halted, it offered concessions for outstanding commitments: “All existing PRNs at partner prices will remain valid for loading, any Partner awaiting PRN for payment made at Partner price before the effective date will receive the same.”

Retail stations were also reminded to adhere strictly to the recommended pump prices in a bid to curb market distortion and protect consumers.

Despite the setback, the refinery maintained that its strategic partnership initiative remains intact and that alternative incentive or reward schemes were under consideration.

“DPRP is judiciously exploring other incentive/reward schemes for Strategic Partners, which will be communicated in due course,” the letter added.

Expert insight

An oil and gas expert, Olatide Jeremiah, according to the Punch, confirmed the malpractice, stating that affiliate marketers were using their loading rights to supply non-affiliated marketers, capitalising on the price difference for quick profit.

“The information is true. It is the affiliated marketers to Dangote who have the ticket to load products at the refinery that are selling it to other marketers, basically to make a quick profit,” he explained.

He added, “Dangote has a discount scheme for its customers, so that they can make money from the sales of petroleum products at their stations. So instead of selling it at the station, they would sell it to other marketers and depot owners, below the normal price at the gantry.”

Jeremiah highlighted that this practice extended to products supplied on credit, under a volume-backed repayment plan meant to support national distribution.

“These marketers would receive the products and sell them immediately to unregistered marketers. So they have suspended the scheme and are selling at the normal rate, but they said it would be restructured.”

Also, Checks by the Punch correspondent using data from petroleumprice.ng revealed that non-affiliated marketers, who depend entirely on imported fuel, continued to retail at the same price range as Dangote’s partners, despite not being beneficiaries of the subsidy scheme.

Last trend

Last week, at least five private depots adjusted their ex-depot prices to align with Dangote latest pricing, selling at an average of ₦820 per litre, a reduction from ₦835 per litre earlier in the week.

While the company did not list the defaulting marketers, a review of Dangote’s 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.

When contacted for an official response, Anthony Chiejina, Group Head of Corporate Communications for Dangote Group, requested more time, stating that the refinery is not in a dispute with any marketer.