Dangote Refinery Halts Petrol Discount Scheme Over Partner Fraud Allegations
Dangote Petroleum Refinery and Petrochemicals announced the suspension of its strategic partner discounted pricing scheme on July 13, 2025, citing widespread fraud by affiliate marketers who diverted subsidized petroleum products for illicit profit. The scheme, designed to ensure affordable fuel nationwide, offered discounted prices to registered partners like MRS Oil, Ardova Plc, TotalEnergies, Heyden Petroleum, and Techno Oil, among others, to enable competitive pricing at retail outlets.
In a letter dated July 13, 2025, signed by Fatima Dangote, Group Executive Director of Commercial Operations, the refinery stated: “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.”
The letter highlighted that some partners were reselling their Authority to Collect (ATC) rights – legal authorizations to receive products – to unregistered third-party marketers, who then sold fuel at near-market prices (e.g., N819 per liter compared to Dangote’s discounted N815 versus the market’s N825), bypassing retail costs for quick profits.
Despite multiple engagements with erring partners, the refinery noted that the practice undermined the sustainability of its gantry operations. Consequently, the discounted pricing was suspended, though existing Product Release Notes (PRNs) at partner prices remain valid for loading, and partners who completed payments before July 13 will receive products at the discounted rate. The refinery urged partners to adhere to recommended pump prices to prevent market distortion.
The scheme’s suspension does not affect the strategic partnership framework, with Dangote exploring new incentive programs to support loyal partners. The refinery recently expanded its distribution network, adding companies like TotalEnergies, Garima Petroleum, and Sobaz Nigeria Ltd on July 2, 2025.
Market checks indicate non-affiliated marketers, reliant on imported fuel, aligned their ex-depot prices with Dangote’s at around N820 per liter last week, down from N835, highlighting the competitive pressure and price manipulation. X posts reflect public concern over the fraud, with users noting the scheme’s impact on market stability.
This development follows Dangote’s efforts to stabilize Nigeria’s fuel market through price cuts (e.g., from N880 to N820 per liter in July 2025) and direct distribution plans starting August 15, 2025, backed by 4,000 CNG-powered tankers. The suspension underscores ongoing challenges in Nigeria’s downstream sector, despite the refinery’s role in reducing import reliance.
