The Dangote Refinery has suspended its discounted fuel supply program after uncovering a fraud scheme within its distribution network.
The scam involved some affiliate marketers and key partners diverting subsidized refined petroleum products meant to lower fuel costs in Nigeria and reselling them at full market rates for profit.
After an internal investigation, the refinery found that certain marketers who were given discounted fuel to help ensure steady supply across the country had instead redirected the products to unregistered third-party marketers.
These diverted products were then sold at prices far above the discounted rates, undermining the entire goal of the scheme.
According to a report by The Punch, the original aim of the program was to make Dangote’s refined products accessible nationwide and help registered affiliate marketers stay profitable in a competitive market where importers are active.
However, the marketers involved in the fraud allowed unregistered and importing marketers to use their Authority To Collect (ATC) loading tickets to pick up products directly from the refinery.
This allowed them to benefit from the price difference without taking on the actual costs of running retail stations, following regulations, or covering legitimate logistics expenses. As a result, the refinery has decided to pause the discount initiative.
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The decision was outlined in a letter sent to all strategic partners on July 13, 2025, and signed by Fatima Dangote, Group Executive Director for Commercial Operations.
The company noted that the abuse had become widespread, leaving no option but to halt the program.
Part of the letter, titled “Suspension of the Strategic Partner Discounted Price,” reads:
“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 is now planning a restructuring of the program to prevent further misuse and protect the sustainability of its operations.
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Image Credit: Economic Confidential
