Dangote Refinery Stops Selling Discounted Fuel as Private Depot Slashes Price

• The Dangote Petroleum Refinery and Petrochemicals have suspended its discounted petrol delivery program after discovering fraud
• The refinery found that these diverted goods were being resold at significantly higher market prices, undermining the program's goals
• Despite this, the refinery assured that strategic partnerships remain intact and is exploring new incentive schemes for its partners

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Dangote Petroleum Refinery and Petrochemicals have suspended its discounted gasoline delivery program after discovering a new fraud involving some of its affiliate marketers and key partners who were profitably diverting subsidised refined petroleum products.

The refinery's investigations showed that some marketers who received discounted products—which were intended to guarantee affordability and a consistent supply across retail locations—had been sending the loaded trucks to unregistered third-party marketers.

The program was first created to ensure that the refinery's goods were available throughout the country and to assist Dangote's registered affiliate marketers in maintaining steady profit margins in the face of the price rivalry among gasoline importers.

By permitting unregistered marketers to import, using their Authority To Collect loading ticket to pick up products from the refinery, the marketers were discovered to be evading the distribution chain.

This enabled them to quickly turn a profit by taking advantage of the pricing difference without having to pay for appropriate expenses related to administrative compliance, retail station operations, or logistics.

The refinery observed that the diverted goods were frequently offered for sale at market prices that were significantly higher than the agreed-upon subsidised pricing, thus defeating the scheme's main goals and distorting the downstream market.

The Punch reported that this circumstance infuriated the refinery, which ordered the suspension of its customer discount program effective July 13, 2025.

A letter signed by Fatima Dangote, Group Executive Director-Commercial Operations, and sent to all key partners on July 13, 2025, revealed the most recent directive.

The Dangote refinery's management revealed that several marketers were reselling petroleum products straight from the tarmac at prices lower than the official gantry price, which was considered detrimental to the operations' long-term viability.

Despite multiple interactions with negligent partners, the firm, which introduced the discounted price plan to guarantee affordable and clean petroleum supplies for everyone in the country, claimed that the agreement was being abused widely.

The letter read in part,

“Unfortunately, over the last few months, DPRP received 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 from 13th July 2025 and working towards restructuring the scheme.”

However, to guarantee ongoing product off-take, the refinery made some concessions, stating that all outstanding Product Release Notes issued at the lower partner rate would still be available for loading. Additionally, partners would continue to receive products at the agreed-upon discounted rate if they had finished payment procedures prior to the effective suspension date.

The business also reaffirmed that to maintain consistency and stop additional market distortion, all retail stations must keep their pump pricing within the suggested range.

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.

Depot owners slash petrol prices

Legit.ng reported that Private depot owners across Nigeria have slashed their ex-depot petrol prices in a bid to stay competitive with the Dangote Refinery.

The refinery cut its petrol price from N880 to N820 per litre and has kept it steady between the N819 and N821 levels.

New data obtained from Petrolumprice.ng shows that several key depots, including Matrix Warri, A.Y.M Shafa, and Rainoil Delta, reduced their Premium Motor Spirit (PMS) prices by up to N10 per litre in the last 24 hours.

Source: Legit.ng