Paragraph 1: Unveiling the Fuel Diversion Racket
The Dangote Petroleum Refinery and Petrochemicals has uncovered a sophisticated scheme involving some of its affiliate marketers and strategic partners who have been exploiting a subsidized fuel program for personal gain. These marketers, granted access to discounted refined petroleum products to ensure affordability and consistent supply across retail outlets, were found to be diverting these products to unregistered third-party marketers, effectively circumventing the intended distribution chain. This discovery has led to the suspension of the refinery’s discounted fuel supply scheme, a move aimed at curbing the malpractice and restoring order to the downstream market.
Paragraph 2: The Mechanics of the Scheme and its Impact
The discounted product scheme was initially designed to support Dangote’s registered affiliate marketers in maintaining stable profit margins amidst competitive pressures from fuel importers, while simultaneously guaranteeing nationwide product availability. However, these marketers exploited the system by utilizing their Authority To Collect (ATC) loading tickets to allow unregistered, importing marketers to pick up products directly from the refinery. This illicit practice enabled these unauthorized marketers to profit from the price differential without incurring the legitimate costs associated with logistics, retail station operations, and administrative compliance. Essentially, they were reaping the benefits of the subsidy without fulfilling the intended obligations.
Paragraph 3: Consequences and Corrective Actions
The diverted products were frequently sold at market rates significantly higher than the agreed subsidized prices, undermining the fundamental objectives of the scheme and creating distortions in the downstream market. This manipulation not only negated the intended benefits of the program but also created an uneven playing field for those marketers adhering to the stipulated guidelines. In response to these blatant violations, Dangote Refinery management has suspended the discounted price scheme for its partners, effective July 13, 2025, as communicated in an official letter to all strategic partners.
Paragraph 4: Details of the Suspension and Concessions
The suspension, while decisive, includes certain concessions to ensure a smooth transition and continued product offtake. Outstanding Product Release Notes (PRNs) issued at the discounted partner rate remain valid for loading, and partners who had completed payment processes before the effective suspension date will still receive products at the agreed discounted price. Critically, the refinery has reinforced the importance of adherence to recommended pump prices across all retail stations to maintain uniformity and prevent further market distortions. This emphasizes the refinery’s commitment to stabilizing the market and protecting consumers.
Paragraph 5: Future of the Partnership and Expert Analysis
Despite the suspension, the Dangote Refinery maintains that the strategic partnership program remains valuable and will not be terminated. The company is actively exploring alternative incentive and reward schemes for its strategic partners, which will be communicated in due course. Industry experts confirm the prevalence of this malpractice, highlighting how affiliated marketers with loading access at the refinery were diverting products, including those received on credit under volume-backed repayment agreements, to non-registered marketers for quick profits. This practice effectively short-circuited the intended distribution channels and disrupted the market equilibrium.
Paragraph 6: Market Observations and Stakeholder Responses
Market analysis reveals that non-affiliated marketers, reliant on imported fuel, have continued to sell at similar price points as Dangote’s registered marketers, despite not benefiting from the refinery’s subsidized product scheme. This suggests that the market has, to some extent, adjusted to the prevailing conditions, even in the face of these manipulations. Several privately-owned depots have also aligned their ex-depot prices with Dangote refinery’s latest adjustments. While the Dangote refinery refrained from publicly naming the defaulting marketers, its current list of strategic partners includes several prominent players in the industry. The Dangote Group has acknowledged the situation but requested additional time to provide an official response, emphasizing that the refinery is not engaged in a dispute with its marketers. This suggests a focus on internal resolution and restructuring of the partnership program to prevent future occurrences of this nature.
