Collaboration With Marketers On Petrol Distribution Subsists – Dangote Refinery

The Dangote Refinery has said that its strategic partnership programme with petroleum marketers remains intact but will undergo a restructuring. The company said it is developing a new incentive or reward scheme for loyal partners.

The assurance is coming after the Refinery’s management suspended its discounted fuel supply scheme after uncovering a widespread product diversion racket involving its affiliate marketers and strategic partners.

However, it urged all retail stations to adhere to the recommended pump prices to avoid any further market distortion.

The refinery’s management confirmed that certain partners had been reselling refined products originally meant to be sold at subsidised rates through their retail outlets to unregistered marketers for profit. The abuses prompted an immediate suspension of the scheme on 13 July 2025.

However, the group head of Corporate Communications, Anthony Chiejina, said the refinery was not in conflict with marketers but was taking corrective steps to ensure operational sustainability.

The company did not officially name the defaulting marketers, but its list of current strategic partners includes MRS Oil, TotalEnergies, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, Techno Oil, and Sobaz Nigeria Ltd.

Market observations showed that some non-affiliated depot operators had aligned their pricing with Dangote’s adjustments, selling at an average of N820 per litre down from N835 earlier in the week.

The discount initiative was designed to support registered marketers by offering refined petroleum products at below-market rates, aiming to maintain competitive pricing and steady supply nationwide. However, investigations revealed that marketers allowed unregistered third parties to use their loading tickets, known as Authority To Collect (ATC), to lift products, bypassing retail operations and reaping profits without incurring operational costs.

In a circular signed by the group executive director of Commercial Operations, Fatima Dangote, the company described the abuse as threatening its operations and market stability.

“Over the last few months, DPRP has been receiving unprecedented complaints of strategic partners selling their ATCs at the refinery below the prevailing PMS gantry product price,” the letter stated.

A key element of the malpractice was the resale of discounted products at market prices higher than the refinery’s subsidised rate, with profits made from the price gap.

For example, while Dangote was offering premium motor spirit (PMS) to its affiliates at N815 per litre, marketers were reportedly selling the same product at N819 to unregistered marketers just below the official price of N825 thereby making an instant profit of N4 per litre.

Industry analyst Olatide Jeremiah confirmed the reports, noting that the scheme was further compromised by the misuse of Dangote’s credit-based volume scheme. Under that programme, partners received additional volumes on credit to boost nationwide distribution.

“Instead of ensuring circulation at their retail stations, these partners diverted the products to unregistered buyers, cashing in quickly,” Jeremiah said.

In addition to halting new sales at the partner price, the refinery allowed all previously approved Product Release Notes (PRNs) to remain valid. Partners who had made payments before the 13 July suspension will still receive products at the discounted rate.