Dangote refinery suspends petrol discount scheme over alleged violations by partners

The Dangote Petroleum Refinery (DPR) says it has suspended strategic partner discounted pricing scheme, which offered price incentives, following complaints that some partners were selling their authority to collect (ATC) rights.

ATC refers to the legal authorisation granted to an entity to receive specific items — such as products, funds, or documents — on behalf of another party.

In a letter signed by Fatima Dangote, group executive director, commercial operations, seen by TheCable, the refinery said some partners were reselling their ATC rights to marketers outside the scheme, allowing them to lift products below the prevailing ex-gantry price.

“In our drive to ensure the distribution and retail sale of DPRP refined petroleum products across your service stations nationwide, DPRP commenced the strategic partnership scheme with the sole aim of ensuring consumers nationwide have access to affordable and clean petroleum products,” the refinery said.

“Unfortunately, over the last few months, DPRP has been receiving unprecedented complaints of Strategic Partners (Partners) selling their ATCS at the refinery (Tarmac) below the prevailing PMS gantry product price.”

Despite multiple engagements with its strategic partners, the refinery said it is “evident that it has become an area of grave concern to the refinery as it affects its sustainability of our gantry operations”.

Consequently, the refinery management said it suspended the “discounted price offered to Partners” from July 13.

The refinery said it is currently working on restructuring the scheme and has introduced certain concessions to ensure the continued off-take of its products.

As such, the organisation said all existing product release notes (PRNs) at partners price will remain valid for loading.

“Any Partner awaiting PRN for payment made at Partner price before the effective date will receive same,” the letter reads.

“Recommended pump prices across the retail stations should still be adhered to.”

The refinery assured its partners that the suspension does not diminish the importance of the strategic partnership scheme, nor does it jeopardise the mutually beneficial relationship it shares with them.

The Dangote refinery said it was judiciously exploring other incentive/reward schemes “for our valued strategic partners which will be communicated soonest”.

On July 2, the refinery said several oil marketing companies joined its growing distribution network.

The refinery listed the companies to include TotalEnergies, Garima Petroleum, Sunbeth Energies, Sobaz Nigeria Ltd, Virgin Forest Energy, Sixxco Oil Ltd, NU Synergy Ltd, and Soroman Nigeria Ltd.

Other existing partners include MRS Oil, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, and Techno Oil.