The right Naija news at your fingertips

Dangote Halts Fuel Discount Scheme Amid Fraud Allegations

The Dangote Petroleum Refinery has stopped its discounted fuel supply program after it found out that some of its affiliate marketers were abusing the system. These marketers were supposed to sell the discounted fuel directly to customers at their stations, but instead, they sold it to outside dealers for higher profits.

An investigation by the refinery revealed that marketers who were given subsidised fuel at reduced rates were diverting the products to third-party companies not registered with Dangote. This went against the aim of making fuel more affordable and available across the country.

The discount scheme was created to help Dangote’s official partners maintain stable profits and compete with fuel importers. But instead of selling the products at official retail outlets, some marketers were handing over their loading tickets to other marketers, who were not part of the program.

These marketers were able to make quick profits by avoiding costs such as logistics, station management, and admin fees. They sold the fuel at higher market prices, ignoring the discount arrangement, which caused problems in the fuel market and went against the purpose of the scheme.

Because of these issues, Dangote Refinery decided to stop the discount scheme from July 13, 2025. The decision was shared in an official letter signed by Fatima Dangote, the Group Executive Director of Commercial Operations.

The refinery also discovered that some partners were reselling fuel directly from the loading area at cheaper prices than the official rate, which could harm the company’s long-term operations.

The discount system was created to give Nigerians clean and affordable fuel across the country. But Dangote said the misuse of this program had become too common, even after several warnings to the marketers involved.

The refinery’s letter, titled “Suspension of the Strategic Partner Discounted Price”, explained that the scheme was introduced to help consumers buy affordable fuel at strategic partner stations nationwide. But complaints had flooded in about partners selling their loading tickets at reduced prices right at the refinery, which caused concern for the business.

As a result, Dangote Refinery announced it would temporarily stop giving discounted fuel to partners from July 13, 2025. However, the company said it would look into restructuring the scheme for the future.

Even though the scheme has been suspended, the company said it would still honour all previously issued loading permits with the old discount. Anyone who had completed payment before July 13 would also get fuel at the discounted rate.

The refinery reminded all its partners to continue selling fuel at the recommended pump prices to avoid further problems in the market.

Despite the issues, Dangote assured that the partnership with strategic marketers is still important and will not be scrapped. The company is currently working on new ways to reward its partners and will share the details soon.

Oil and gas expert, Olatide Jeremiah, confirmed the fraud. He said that registered Dangote marketers were selling the discounted fuel to other marketers instead of selling it at their stations. This helped them make a fast profit without going through normal expenses.

He explained that some marketers were receiving fuel on credit to increase supply but were also reselling it illegally. Because of this, Dangote had to cancel the discount scheme for now, though it plans to bring it back in a better way later.

Market data from petroleumprice.ng showed that other fuel sellers, who don’t get discounted fuel from Dangote, are still selling at about the same price. For example, some depots adjusted their prices last week to N820 per litre, down from N835 at the start of the week.

While Dangote has not publicly listed the names of marketers involved in the fraud, the refinery’s current partners include well-known companies like MRS Oil, TotalEnergies, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, and others.

When asked about the issue, Dangote Group’s spokesperson, Anthony Chiejina, said the company is not in a fight with any marketer and will provide an official statement later.

Related News