The largest crude oil refinery in Nigeria, the Dangote Refinery and Petrochemicals Plant, has suspended its discounted fuel supply scheme after uncovering a fuel diversion racket involving some of its partners.
This was announced in a letter dated July 13, 2025, signed by Fatima Dangote, the executive director (Commercial Operations) of Dangote Group, and reviewed by Bavijas.
The refinery’s management alleges that some affiliate marketers and strategic partners have been secretly rerouting trucks loaded with subsidised refined petroleum products for personal profit.
The scheme was initially designed to ensure an affordable and steady supply of products across the country and to help affiliated marketers achieve stable profit margins during periods of price fluctuation. However, it has now been hijacked by unregistered third-party marketers.
Specifically, the refinery states that importing non-partner marketers were found to be circumventing the distribution chain by lifting products from the refinery using the loading tickets of registered customers.
As a result, these non-partners were able to make quick profits from the price differential without incurring the legitimate costs associated with logistics, retail station operations, or administrative compliance.
If you’ve ever wondered why marketers of Dangote products and supposed fuel importers are selling at nearly the same price, this is the reason.
Dangote, which plans to refine 100% Nigerian crude by year-end, says it has received numerous complaints in recent months about partners selling products at the gantry for less than what they paid at the refinery’s tarmac.
“Whilst we have engaged Partners severally on this, it has become evident that this has become an area of grave concern to DPRP as it affects the sustainability of our gantry operations,” the letter reads.
“To this end, DPRP Management is suspending the discounted price offered to Partners effective 13th July 2025 and working towards restructuring the scheme.”
However, the plant has offered certain concessions for the continued lifting of products. All outstanding Product Release Notes issued at the discounted partner rate will remain valid for loading.
Similarly, partners who made full payment before the directive will still receive products at the agreed discounted rate.
The refinery recently announced a new ex-depot average price of ₦820 per litre, down from the average of ₦835 per litre at the start of the week. This is the second adjustment since the June 30 price of ₦840, attributed to a drop in global oil prices.