Dangote Introduces New Incentive Program After Suspending Petrol Delivery

• Dangote Refinery announced a restructuring of its strategic partnerships with petroleum marketers and introduced a new reward program
• The development followed the suspension of its gasoline delivery program due to widespread product diversion in the country
• The refinery found that some partners were reselling refined products to unregistered marketers at lower prices, leading to market distortions

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

Dangote Refinery has stated that its program of strategic partnerships with petroleum marketers will be restructured but will remain intact. The company said that it was creating a new reward or incentive program for devoted partners.

The guarantee follows the suspension of the Refinery's gasoline delivery program by the management, which discovered a massive product diversion operation using its affiliate marketers and strategic partners.

To prevent further market distortion, it advised all retail stations to adhere to the suggested pump prices.

The management of the refinery acknowledged that some of its partners had been profitably reselling refined products to unregistered marketers through their retail locations at a reduced price. On July 13, 2025, the scheme was immediately suspended due to the abuse.

To prevent further market distortion, it did, however, advise all retail stations to follow the suggested pump prices.

According to the refinery's management, some of its partners have been profitably reselling refined items that were originally intended to be sold to unregistered marketers at reduced prices through their retail locations. Due to the abuses, the program was immediately suspended on July 13, 2025.

According to market observations, several independent depot owners have adjusted their prices to reflect Dangote's changes, selling at an average of N820 per litre instead of N835 earlier in the week.

With the goal of maintaining competitive pricing and a consistent supply across the country, the discount program was created to assist registered marketers by providing refined petroleum products at below-market prices.

Investigations, however, showed that marketers permitted unregistered third parties to lift merchandise using their loading tickets, often known as "Authority to Collect" (ATC), avoiding retail operations and making money without having to pay for operations.

The business characterised the abuses as a threat to its operations and market stability in a circular signed by Fatima Dangote, group executive director of Commercial Operations.

“Over the last few months, DPRP has been receiving unprecedented complaints of strategic partners selling their ATCs at the refinery below the prevailing PMS gantry price,” the letter stated.

The resale of subsidised products at market prices higher than the refinery's subsidised rate, with profits earned from the price differential, was a crucial component of the malpractice.

For instance, marketers were allegedly selling premium motor spirit (PMS) to unregistered marketers at N819 per litre, which is slightly less than the legal pricing of N825, while Dangote was offering the same to its affiliates at N815 per litre. This allowed them to make an immediate profit of N4 per litre.

Industry analyst Olatide Jeremiah confirmed the reports, noting that the scheme was further compromised by the misuse of Dangote’s credit-based volume program. Under that programme, partners received additional volumes on credit to boost nationwide distribution.

“Instead of ensuring circulation at their retail stations, these partners diverted the products to unregistered buyers, cashing in quickly,” Jeremiah added.

The refinery permitted all previously approved Product Release Notes (PRNs) to stay in effect while also stopping new sales at the partner's price. Partners will continue to receive products at the discounted pricing if they paid prior to the stoppage on July 13th.

Dangote Refinery stops selling discounted fuel

Legit.ng reported that Dangote Petroleum Refinery and Petrochemicals have suspended its discounted petrol 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.

Source: Legit.ng