Dangote Fuel Discount Row: Marketers Reject Diversion Claims, Demand Scheme Reinstatement
- Petroleum product marketers have finally broken their silence on the allegations of fuel diversion by the Dangote Refinery
- The marketers, most of whom were suspended by the facility, revealed that they were not diverting fuel but devising survival strategies
- Last week, Dangote Refinery announced the suspension of its fuel discount to marketers, leading to speculations that they might be dropped
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has denied allegations that its members diverted subsidised petrol distributed under the Dangote Refinery’s discount scheme.
The association said marketers are simply adapting to survive Nigeria’s challenging economic conditions and fluctuating demand for petrol.
Source: Getty Images
Dangote suspends discount over alleged abuse
Dangote Refinery recently suspended its discounted fuel pricing scheme after uncovering what it called a widespread racket involving its strategic partners.
According to the company, some marketers were diverting discounted petrol meant for registered outlets to unregistered third-party dealers, undermining the purpose of the subsidy.
The discount scheme was designed to help Dangote’s partner marketers maintain reasonable margins and ensure a steady supply of fuel across the country.
However, the company alleged that some partners allowed non-affiliate marketers to collect products using their loading tickets, profiting from the price gap without meeting operational obligations.
IPMAN says diversion claims are baseless
IPMAN's National Public Relations Officer, Chinedu Ukadike, said the allegations were unfounded.
Ukadike argued that product movement within Nigeria does not constitute diversion, especially when done to manage slow sales and storage limitations.
Ukadike explained that because of low demand and rising competition from fuel importers and CNG alternatives, marketers are struggling to sell products quickly. To stay afloat, some resort to distributing Dangote-supplied fuel through partner stations that are not officially registered with the refinery.
According to a report by Daily Sun, Ukadike emphasised that marketers often lack the infrastructure to store large volumes and must rely on external depots or third-party stations.
“If a marketer has buying power but weak distribution, they partner with idle filling stations to recover costs quickly,” he explained.
Dangote Promises Review, Temporary Concessions
In a memo titled “Suspension of the Strategic Partner Discounted Price,” Dangote Refinery confirmed it would restructure the scheme.
However, it offered concessions: discounted prices would still apply to payments made before July 13, 2025, and any pending releases would remain valid.
While Dangote’s move is seen as necessary to prevent abuse, marketers are urging transparency and fair treatment in any new policy rollout.
They insist the product remains within Nigeria and should not be labelled “diverted” if simply redirected to meet sales needs.
Source: Getty Images
Price cuts continue amid controversy
Amid the dispute, Dangote Petroleum Refinery reduced its ex-depot price for PMS from ₦840 to ₦820 per litre on July 8, marking its second cut in nine days. The company says this is part of efforts to make fuel more affordable despite current challenges.
As Dangote continues discussions with partners like MRS Oil, Ardova, TotalEnergies, and others, industry stakeholders remain on edge. Whether the discount scheme will be fully reinstated or permanently modified is a question the coming weeks may answer.
Dangote’s CNG truck rollout divides marketers
Legit.ng earlier reported that with the imminent deployment of 4,000 Compressed Natural Gas (CNG) trucks by Dangote Petroleum Refinery, Nigeria’s downstream oil sector is abuzz with both anticipation and anxiety.
The company’s free distribution model promises to cut costs for marketers but has sparked concerns about monopoly and job losses among industry players.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) admits its members feel they have no real alternative.
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Source: Legit.ng
