Dangote Refinery Suspends Discounted Fuel Scheme Over Widespread Fraud
The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme following the discovery of a widespread fraud involving some of its strategic partners and affiliate marketers.
According to a letter issued on July 13 and signed by Fatima Dangote, Group Executive Director for Commercial Operations, the scheme was halted after internal investigations revealed that certain marketers had been diverting subsidised petroleum products intended for retail stations. Instead, these marketers reportedly resold the products to unregistered third parties for quick profit, undermining the core objectives of the initiative.
Originally launched to help affiliate marketers remain competitive against fuel importers and guarantee nationwide access to affordable fuel, the discounted pricing scheme has now been marred by allegations of profiteering and supply chain manipulation.
“The refinery has received unprecedented complaints of strategic partners selling their Authority To Collect (ATC) tickets directly at the tarmac, below the official gantry price,” the letter stated. “Despite several engagements, the abuse has continued, affecting the sustainability of our operations.”
In response, the company immediately halted the discounted sales scheme as of July 13, with plans to restructure the program. However, it provided concessions: outstanding Product Release Notes (PRNs) issued at partner prices remain valid, and any marketer who completed payment before the cutoff date will still receive fuel at the subsidised rate.
Despite the suspension, the Dangote Refinery emphasized that it has not scrapped its strategic partnership initiative. It noted that it is considering alternative incentive and reward schemes, which will be communicated soon.
Meanwhile, oil and gas analyst Olatide Jeremiah confirmed the scale of the malpractice. “Some affiliated marketers with loading access at the Dangote refinery were selling to non-registered marketers at near-import parity prices, bypassing expenses like logistics and station management,” he said. “They were even abusing credit-backed supply arrangements designed to boost nationwide distribution.”
Jeremiah explained that registered partners who received fuel at a discounted rate of around ₦815 per litre were reselling to others at ₦819—still cheaper than the publicly announced ₦825. This allowed them to make a quick ₦4 profit per litre, without the operational responsibilities the scheme intended to support.
A review of market data showed that prices at private depots aligned closely with Dangote’s rate, even among marketers who did not benefit from the subsidy. As of last week, ex-depot prices averaged ₦820 per litre, down from ₦835 at the start of the week.
While the refinery did not publicly name defaulting marketers, companies listed as Dangote’s strategic partners include 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.
In response to media inquiries, Dangote Group’s head of corporate communications, Anthony Chiejina, said the company is not in conflict with any marketers but requested time to provide an official statement on the developments.
The suspension marks a major turning point for the much-publicized discounted fuel scheme, initially hailed as a game-changer in the nation’s downstream oil sector. With restructuring underway, stakeholders now await the next steps from Africa’s largest refinery.
