The Dangote Petroleum Refinery and Petrochemicals has suspended its discounted fuel supply scheme following revelations that some affiliate marketers were diverting subsidised products to unregistered third-party dealers for profit.
Investigations by the refinery uncovered that marketers granted access to discounted fuel were bypassing the intended retail supply chain by selling directly to non-affiliated operators. These transactions, often completed on the refinery tarmac, allowed the marketers to profit from price differentials without bearing the operational costs associated with logistics and retail distribution.
In response, the refinery issued a letter dated July 13, 2025, and signed by Group Executive Director, Commercial Operations, Fatima Dangote, suspending the discounted pricing scheme. The move aims to prevent further abuse, protect market stability, and restructure the initiative for better compliance.
Despite the suspension, the refinery assured partners that previously issued Product Release Notes would remain valid and that pump price uniformity must be maintained at retail outlets. The company also confirmed it is developing new incentive programs to reward compliant strategic partners.
Oil and gas experts, including Olatide Jeremiah, confirmed the malpractice, which also affected credit-based supply arrangements. The situation has distorted the downstream market, with non-affiliated marketers selling at similar rates as beneficiaries of the scheme, undermining the goal of nationwide fuel affordability.