Victor EzejaThe Dangote Petroleum Refinery recently uncovered a fuel diversion racket involving some of its affiliate marketers and strategic partners, leading to the suspension of its discounted fuel supply scheme on 13 July 2025.
The refinery management said its investigations revealed that some marketers had been re-routing the loaded trucks to unregistered third-party marketers. These marketers had been given discounted products to make sure they would be affordable and available at all retail outlets.
Join our WhatsApp ChannelInitially, the plan was to assist registered affiliate marketers of Dangote Refinery in maintaining consistent profit margins amid price competition from fuel importers and to ensure that their products were available nationwide.
However, it turned out that the marketers were allowing unregistered importers to use their Authority To Collect (ATC) loading tickets to obtain products from the refinery, thereby bypassing the normal retail distribution chain and generating undue profits from the price differential without incurring the actual operational costs.
The refinery observed that the diverted products were frequently offered for sale at market prices that were significantly higher than the agreed-upon subsidized prices, thereby undermining the scheme’s main goals and distorting the downstream market.
The management of the Dangote refinery revealed in a letter to all strategic partners dated July 13, 2025, signed by Group Executive Director-Commercial Operations Fatima Dangote, that certain marketers were reselling petroleum products straight from the refinery’s tarmac at prices lower than the official gantry price. This was considered detrimental to the long-term viability of the business.
“Unfortunately, over the last few months, DPRP has been receiving unprecedented complaints of strategic partners selling their ATCs at the refinery below the prevailing PMS gantry product price,” part of the letter titled “Suspension of the Strategic Partner Discounted Price,” read.
READ ALSO: Again, Dangote Refinery Slashes Petrol Ex-depot Price To ₦820
“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.”
Under the partnership scheme, Dangote sold Premium Motor Spirit (PMS) to partners at ₦815 per litre. However, the marketers are reportedly reselling the same products to third parties at ₦819 per litre, just below the official market price of ₦825 per litre, making an instant ₦4 per litre profit.
Some credit-based volume schemes (where partners received extra fuel on credit to boost distribution) were also abused, with products sold for quick cash instead of retail circulation.
Despite the suspension, the refinery informed that it has given concession that Valid Product Release Notes (PRNs) issued before 13 July will still be honored, meaning that all outstanding PRNs issued at the discounted partner rate would continue to be valid for loading. Additionally, partners would still receive products at the agreed-upon discounted rate if they had finished payment procedures prior to the effective suspension date.
READ ALSO: Dangote Refinery To Start Processing Only Nigerian Oil By Year End
The refinery said it is developing a new incentive scheme for loyal partners while maintaining the strategic partnership framework.
The Dangote Refinery further stated that in order to prevent additional market distortion, all retail stations must continue to follow the suggested pump prices.
Checks revealed that some non-affiliated depot operators sold at an average of ₦820 per litre, which was lower than ₦835 earlier in the week, in line with Dangote’s price adjustments.
MRS Oil, TotalEnergies, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, Techno Oil, and Sobaz Nigeria Ltd. are among the company’s current strategic partners; however, it did not formally identify the defaulting marketers.
Implications of the Suspension
The suspension highlights challenges in Nigeria’s fuel distribution system, including regulatory gaps and profit-driven malpractices.
Dangote’s move signals a push for greater oversight in its supply chain, even as it prepares for direct nationwide fuel distribution starting 15 August 2025.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
