The Dangote Petroleum Refinery has suspended its widely anticipated fuel discount scheme following the discovery of a fuel diversion racket involving some of its strategic partners.
The discount initiative, which aimed to offer Premium Motor Spirit (PMS) at reduced rates to select marketers, was designed to help stabilize supply and maintain healthy margins for retail operators across Nigeria.
However, recent investigations by the refinery’s management revealed that several marketers had been engaging in fraudulent activities by selling their Authority To Collect (ATC) tickets to unregistered third parties rather than their designated retail outlets.
In an official circular dated July 13, 2025, and signed by the Group Executive Director of Commercial Operations, Fatima Dangote, the company stated that it had received numerous complaints about ATCs being traded below the official ex-depot price, thereby defeating the purpose of the scheme. According to the circular, “DPRP has been receiving unprecedented complaints of Strategic Partners selling their ATCs at the refinery below the prevailing PMS gantry product price… This 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.”
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Reports indicate that Dangote had been offering PMS at ₦815 per litre under the discount scheme, while some affiliates sold these allocations to non-accredited marketers at ₦819—just ₦6 shy of the official depot price of ₦825. These marketers made instant profits without following the proper distribution channels, resulting in unregulated resale, hoarding, and market distortion.
Industry insiders disclosed that some partners even used the discounted allocations, often obtained on credit, to resell immediately for cash, violating both the trust and terms of their agreement with the refinery.
Despite the suspension, Dangote Refinery clarified that all Product Release Notes (PRNs) issued before July 13 remain valid. Any partner who had completed payment before the cutoff date would still receive fuel at the discounted rate. Retail stations have also been advised to maintain the regulated pump prices to avoid unnecessary panic and inflation at the consumer level.
Oil sector analyst Olatide Jeremiah described the situation as a clear case of institutional abuse by licensed marketers who chose quick profits over integrity. “They received the products and immediately diverted them to unregistered operators, making fast gains and defeating the entire purpose of the discount,” he noted.
In response to the developments, other depot operators have started adjusting their prices, with ex-depot rates dropping from ₦835 to around ₦820, aligning closer with Dangote’s corrected benchmarks.
The suspension, while temporary, has triggered conversations about the refinery’s oversight mechanisms and the broader implications for market transparency.
While the Dangote Group has not ruled out reintroducing the discount initiative, it emphasized that a complete restructuring is underway to ensure only compliant and properly monitored partners benefit from future incentive or reward schemes.
This development marks a significant moment in Nigeria’s downstream petroleum sector, as one of its biggest players grapples with the challenges of internal accountability and market ethics.
For now, the spotlight remains firmly on the affected partners, as regulators and the public await clearer consequences for those responsible for the diversion scandal.
