Dangote Petroleum Refinery and Petrochemicals (DPRP) has uncovered a fresh fraud scheme involving its affiliate marketers and strategic partners who have been diverting subsidized refined petroleum products for personal profit. This malpractice has led to the suspension of the refinery’s discounted fuel supply scheme, effective July 13, 2025.
The investigation revealed that some marketers, granted access to discounted products intended for retail outlets, had been rerouting the loaded trucks to non-registered third-party marketers. This manipulation allowed them to profit from the price differential between subsidized and market rates without incurring legitimate costs.
Background of the Discounted Pricing Scheme
The discounted fuel supply scheme was initially introduced to support Dangote’s affiliate marketers by offering discounted petroleum products. The goal was to stabilize profit margins for these marketers amid competition from fuel importers, while ensuring a steady nationwide supply of the refinery’s products.
However, the investigation revealed that certain marketers were bypassing the agreed distribution channels, leading to the diversion of discounted products to unauthorized parties.
The diverted products were sold at market rates, far above the subsidized price, distorting the pricing structure and undermining the objectives of the scheme.
In light of this, Dangote refinery suspended the discounted pricing for its partners, citing the widespread abuse of the program, despite multiple engagements with the erring marketers.
The Official Suspension and New Guidelines
In a letter dated July 13, 2025, the Group Executive Director-Commercial Operations, Fatima Dangote, informed strategic partners of the decision to suspend the discounted price scheme.
The letter emphasized that the suspension was crucial to maintaining the sustainability of Dangote’s operations and preventing further market distortions.
Key points from the letter included:
- Suspension of Discounted Pricing: The discounted fuel supply program for strategic partners has been suspended as of July 13, 2025, due to the abuse of the scheme.
- Concessions for Existing Orders: All outstanding Product Release Notes (PRNs) issued at the discounted partner rate will remain valid for loading. Partners who completed payment before the suspension will continue to receive products at the agreed discounted rate.
- Adherence to Pump Prices: Retail stations must continue to sell fuel at the recommended pump prices to prevent further market distortion.
Despite the suspension, Dangote reaffirmed that the strategic partnership remains integral to the refinery’s operations, and the company is exploring alternative incentive schemes for its partners.
Expert Insights on the Fraud Scheme
Olatide Jeremiah, an oil and gas expert, confirmed the allegations that affiliate marketers had been selling products meant for retail stations to non-registered marketers for quick profits. This practice undermined Dangote’s efforts to regulate fuel prices and ensure nationwide distribution.
Jeremiah explained, “Instead of selling products at retail stations, these marketers were selling them to others, bypassing operational costs and logistics. They’d buy at a discounted price from Dangote and sell to third-party marketers at near-market rates, making a quick profit without fulfilling their original obligations.”
Impact on the Market
The fallout from this scheme has also affected the broader fuel market. Recent market checks revealed that non-affiliated marketers, who do not benefit from the refinery’s discounted supply, continued to sell fuel at similar price points as Dangote’s registered partners.
This price parity further complicated the situation, especially for marketers who relied solely on imported fuel.
At least five privately-owned depots have adjusted their prices, aligning with Dangote’s new price of N820 per litre, a drop from N835 per litre earlier in the week.
Strategic Partners Involved
While Dangote did not name specific partners involved in the scheme, it is known that some of the refinery’s strategic partners include MRS Oil, Heyden Petroleum, Ardova Plc, and TotalEnergies, among others.
When contacted for a comment, Anthony Chiejina, the Group Head of Corporate Communications at Dangote Group, requested additional time to provide an official response, emphasizing that the refinery is not engaged in a dispute with marketers.
