Dangote Refinery has suspended its discounted fuel supply initiative following the discovery of widespread product diversion by affiliate marketers and strategic partners.
This comes as a letter by the 650,000-barrel-per-day refinery to all its strategic partners dated July 13th, 2025, and signed by Dangote’s Group Executive Director-Commercial Operations, Fatima Dangote, showed that the plant has suspended its discounted fuel supply scheme.
The company cited racketeering by petroleum products markets for its action.
Dangote Refinery’s letter partly reads, “DPRP Management is suspending the discounted price offered to partners effective 13th July 2025 and working towards restructuring the scheme.”
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It, however, urged petrol marketers to “judiciously explore other incentive/reward schemes.”
The company announced that the initiative was halted on July 13, 2025, after investigations revealed that several partners were reselling refined petroleum products—initially offered at subsidised rates—to unregistered marketers for profit.
However, the development comes as the Dangote Refinery is set to commence its direct-to-customers petroleum products distribution scheme from August 15, 2025.
The discount programme was launched to support registered marketers by supplying Premium Motor Spirit (PMS) at below-market rates in a bid to ensure nationwide supply stability and competitive pump prices.
According to a circular signed by Fatima Dangote, Group Executive Director, Commercial Operations, some partners abused their Authority To Collect (ATC) allocations by transferring them to third parties, enabling unregistered buyers to lift products without running retail operations.
The resale of discounted PMS at near-market rates resulted in instant arbitrage profits with reports showing that products purchased at ₦815 per litre were being sold at ₦819, just under the prevailing price of ₦825.
Dangote Refinery described the activity as a direct threat to its operational integrity and market discipline, adding that the abuses prompted immediate corrective action.
Industry analyst Olatide Jeremiah confirmed the reports, noting that some marketers also misused Dangote’s credit-based volume scheme by diverting allocated products instead of distributing through approved retail channels.
Despite the suspension, the company stated that all Product Release Notes (PRNs) approved and paid for before July 13 will remain valid and fulfilled at the discounted rates.
The refinery clarified that while new sales under the discount structure have been frozen, the strategic partnership programme itself remains active and will undergo restructuring.
A new incentive model is being developed to reward compliance and loyalty, according to the company.
The Group Head of Corporate Communications, Anthony Chiejina, said the refinery is not in conflict with any marketer but is taking necessary steps to preserve operational sustainability and market confidence.
Retail stations affiliated with Dangote are expected to maintain price compliance to avoid further distortions, with the company reiterating its stance on transparency and accountability across its downstream operations.
Market data indicates that average depot prices have adjusted in response to the suspension, with some non-affiliated operators lowering PMS prices from ₦835 to around ₦820 per litre.
The refinery did not disclose the names of the defaulting marketers but maintains commercial relationships with key players including MRS Oil, TotalEnergies, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, Techno Oil, and Sobaz Nigeria Ltd.
The suspension marks a decisive move by Dangote Refinery to protect its pricing model and prevent systemic leakage within its distribution network.