In a dramatic twist that sent shockwaves throughout the downstream petroleum industry, the Dangote Petroleum Refinery Limited has ended its deal and allegedly dumped its direct marketers.

The development comes as the facility plans to start an ambitious nationwide fuel distribution on August 15, 2025.

Dangote ends fuel discount deal with marketers

According to reports, a letter by the mega refinery to all its partner marketers and filling stations dated July 13, 2025, and signed by Dangote Group’s Executive Director of Commercial Operations, Fatima Dangote, disclosed that the refinery has suspended its discounted fuel supply scheme.

The letter cited racketeering by marketers for the suspension.

According to the letter, the discounted price offers to partner retailers ended effective July 13, 2025, and the facility is working to restructure the scheme.

It, however, asked marketers to explore other incentives and reward structures offered by the refinery.

Filling stations selling Dangote petrol

Energy policy experts have said the move may be connected to the planned nationwide rollout of petroleum products by the refinery.

Some of the retail marketers under the 650,000 bpd-capacity refinery include MRS Oil, Ardova, Hyde Energy, Optima Energy, Heyden Petroleum, and Techno Oil.

A prior report by Legit.ng disclosed that the Lekki-based refinery recently onboarded 15 new marketers, which include TotalEnergies, among others.

Marketers’ mixed reaction to Dangote fuel plans

Reports have said that marketers under the umbrella of the Independent Petroleum Marketers Association of Nigeria (IPMAN) had planned to adopt the refinery’s fuel distribution plan.

However, the Petroleum Products Retail Outlets Owners Association of Nigeria has objected to the planned nationwide fuel rollout by the refinery over fear of losses.

The refinery recently reduced its ex-depot prices to N820 per litre after depot owners tried to undercut it with cheaper rates.

Will marketers increase petrol prices?

Adeola Yusuf, energy policy analyst and Team Lead at Platforms Africa, stated that the deboarding of marketers may not lead to a fuel price increase from the refinery.

He stated that the refinery may be restructuring as it tries to fine-tune plans to roll out fuel directly to end users on August 15, 2025.

“I am not sure this will lead to a sharp increase in fuel prices. The refinery may be planning a better strategy, especially as it embarks on the massive and ambitious nationwide fuel distribution plans.

“Remember that one of the retailers and partner stations belongs to Dangote’s relative. So, cutting them out may not be in the best interest of both parties, he said.

So, it remains to be seen if the partner stations will exploit the situation to a hike in prices.