Dangote suspends discount voucher over diversion scam

The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme after discovering a racket involving some of its affiliate marketers and strategic partners who have been diverting subsidised refined petroleum products for profit.

Investigations by the refinery revealed that certain marketers who were granted discounted products, meant to ensure affordability and steady supply across retail outlets, had been re-routing the loaded trucks to unregistered third-party marketers.

The scheme was originally designed to support Dangote’s registered affiliate marketers in achieving stable profit margins amid price competition from fuel importers, while also guaranteeing nationwide availability of the refinery’s products.

However, the marketers were found to be circumventing the distribution chain by allowing importing, non-registered marketers to pick up products from the refinery using their Authority To Collect loading ticket. This allowed them to cash in on the price differential without incurring legitimate costs associated with logistics, retail station operations, or administrative compliance, making fast profit.

The refinery noted that the diverted products were often sold at market rates far above the agreed subsidised prices, effectively undermining the core objectives of the scheme and distorting the downstream market. Miffed by this situation, the refinery directed the suspension of its discount scheme for its customers with effect from July 13, 2025.

The latest directive was disclosed in a letter to all strategic partners issued on July 13, 2025, signed by the Group Executive Director-Commercial Operations, Fatima Dangote, and obtained by our correspondent on Thursday.

The management of Dangote refinery disclosed that some marketers were reselling petroleum products directly from its tarmac at rates below the official gantry price, an act deemed inimical to the long-term sustainability of its operations.

The company, which launched the discounted pricing scheme to ensure nationwide access to affordable and clean petroleum products, said the abuse of the arrangement had become widespread, despite several engagements with erring partners.

The letter titled, “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.”

The refinery, however, gave certain concessions to ensure continued off-take of products, noting that all outstanding Product Release Notes issued at the discounted partner rate would remain valid for loading. Also, any partner who had completed payment processes before the effective suspension date would still receive products at the agreed discounted rate.

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Furthermore, the company reiterated that all retail stations must continue to adhere to the recommended pump prices to ensure uniformity and prevent further market distortion.

It added, “Furthermore, please note the following: 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. Recommended pump prices across the retail stations should still be adhered to.”

Despite the suspension, DPRP maintained that the strategic partnership remains relevant and would not be scrapped. The company said it is “judiciously exploring other incentive/reward schemes” for its strategic partners, which will be communicated in due course.

Giving more information on the issue, an oil and gas expert, Olatide Jeremiah, confirmed that some affiliate marketers with loading access at the Dangote refinery had been diverting products to non-registered marketers for quick profit.

He added that this malpractice also extended to products given on credit under a volume-backed repayment agreement intended to boost national distribution.

He said, “The information is true. It is the affiliated marketers to Dangote who have the ticket to load products at the refinery are the ones selling it to other marketers, basically to make a quick profit. 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, but at the price range with amount importing marketers are selling. For instance, if Dangote is giving its registered customers its products at a discounted price of N815, below the publicly announced price of N825. The marketers are now selling at N819, bypassing other expenses, slow sales, and making a quick profit of N4 per litre, and still have enough margin for the receiving marketer to sell at the normal rate of N825 per litre.

“This is also different from extra products received on credit to ensure adequate supply across the nation. There is an agreement with Dangote allowing its partners to receive volumes above the amount paid for, so that they can sell at a particular rate and refund them. This was to ensure circulation at retail stations. But 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.”

Recent market checks by our correspondent using data from petroleumprice.ng revealed that non-affiliated marketers, who rely solely on imported fuel, have continued to sell at the same price range as Dangote’s registered marketers, despite not benefiting from the refinery’s subsidised product scheme.

Last week, at least five privately-owned depots were observed to have aligned their ex-depot prices with the Dangote refinery’s latest price adjustment, selling at an average of N820 per litre, a drop from the N835 per litre they offered at the start of the week.

While the Dangote refinery did not name any of the defaulting marketers, checks show that its current list of strategic partners includes MRS Oil, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, and Techno Oil. Others are TotalEnergies, Garima Petroleum, Sunbeth Energies, Sobaz Nigeria Ltd, Virgin Forest Energy, Sixxco Oil Ltd, NU Synergy Ltd, and Soroman Nigeria Ltd.

When contacted, the group hea of corporate communications, Dangote Group, Anthony Chiejina, requested more time to give an official reaction to the issue, stressing that the refinery is not involved in any squabble with marketers. 

The Punch