The Dangote Refinery recently held back its discounted fuel supply scheme, owing to a fresh racket uncovered within its distribution channel.
- Dangote Refinery halted its discounted fuel supply scheme due to distribution channel fraud.
- Affiliate marketers were found diverting subsidized products to unregistered third parties for profit.
- Discounted products were resold at higher market rates, undermining the scheme’s purpose.
The case of fraud detected by the refinery has been linked to some of the company’s affiliate marketers and key partners who have been diverting subsidized refined petroleum products for profit.
After looking into the case, the Dangote Refinery discovered that a few marketers who had been offered discounted products to ease energy costs in Nigeria and ensure steady supply of fuel across outlets had been diverting loaded trucks to unregistered third-party marketers.
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The investigation further revealed that the products intended to be sold at a discount had been resold at market rates substantially beyond the agreed-upon discounted costs, defeating the whole purpose of Dangote’s discount scheme.
As reported by the Punch, the program’s initial aim was to ensure that the refinery’s products would be available across the country while also helping Dangote’s registered affiliate marketers maintain steady profit margins in the face of gasoline importers’ price rivalry.
The marketers turned out to be circumventing the distribution chain by allowing importing and unregistered marketers to use their Authority To Collect loading ticket to get goods from the refinery.
This made it possible for them to quickly turn a profit by exploiting the pricing gap without having to pay for administrative compliance, retail station operations, or genuine logistics costs.
As a result, the refinery has suspended the discount program.
The decision was detailed in a letter to all strategic partners issued on July 13, 2025, and signed by the Group Executive Director-Commercial Operations, Fatima Dangote.
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The company also revealed that the decision was due to the fact that the racket had now become widespread.
Contents of the letter about the suspension of the fuel supply scheme
“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.”
