Dangote refinery accused of LPG monopoly with secret discounts

DDM News

Aggrieved Nigerian oil marketers have accused the Dangote Petroleum Refinery of monopolising the Liquefied Petroleum Gas (LPG) market through hidden price rebates that favour select companies while undermining smaller, independent competitors.

Diaspora Digital Media (DDM) gathered that these allegations were made in interviews with SaharaReporters on Tuesday, August 5, 2025, by marketers who requested anonymity due to the sensitivity of the issue.

The marketers claimed that although Dangote officially sells LPG at ₦715 per kilogram, certain favoured marketers are secretly given a ₦60,000 rebate per metric tonne, effectively reducing their purchase price to about ₦655 per kilogram.

They argued that this hidden pricing advantage enables major players to dominate the market without incurring losses, while independent businesses suffer financially.

According to the marketers, companies allegedly benefitting from the rebate include Ardova Plc, NIPCO Plc, Rainoil, AA Rano, Algasco, Techno Oil, Sublime Oil, Mezovest Ltd, AYM Shafa, and Borkir Ameogo Pago.

“If you’re given a rebate of ₦60,000 per tonne, and you sell 1,000 metric tonnes, you’re getting back ₦60 million,” one marketer explained.

They said this practice allows large companies to maintain competitive prices while smaller marketers who pay the full rate are forced to operate at a loss.

The situation, they warned, threatens the survival of independent players who are unable to match the artificially low prices set by those with privileged access.

“This is how monopolies are created,” one marketer said.

“They’re selling to us and to themselves at ₦715, but only we take the loss.”

They called on the federal government and regulatory bodies to urgently intervene by investigating Dangote’s pricing practices and enforcing a level playing field in the LPG sector.

Some marketers also voiced fears that Dangote’s growing dominance will lead to the disappearance of independent filling stations across the country.

They warned that by the end of the year, Dangote-branded stations would be widespread, effectively squeezing out all competition.

“The government needs to act now,” one source said.

“If this continues, there will be no room left for smaller marketers by next year.”

Marketers also revealed that transferring large sums to Dangote’s accounts incurs high bank charges, further compounding their losses.

“If you send ₦300 million, the bank takes ₦300,000, not to mention interest if the money was borrowed,” one marketer noted.

Some even accused the Nigerian government of being complicit in what they described as a grand monopoly scheme.

According to one insider, Dangote allegedly struck a deal with French-Lebanese businessman Gilbert Chagoury and lobbied President Bola Tinubu to gain an upper hand.

They further alleged that almost every state governor and elite figure in Nigeria has financial interests in the Dangote Refinery.

“The issue now isn’t about government revenue anymore,” a marketer stated.

“It’s about what individuals are pocketing behind closed doors.”

The marketers warned that this powerful network of political and financial backers makes Dangote’s dominance inevitable unless regulatory agencies intervene.

They alleged that the refinery is collecting sensitive data from tank farms, including their loading and storage capacities, in a bid to control the supply chain.

“Dangote wants total control,” one of them claimed.

“They’re tracking everything, from tank farms to volume capacity. That’s the next level of monopoly.”

The marketers said Dangote could soon flood the country with over 10,000 branded trucks and franchise dormant filling stations nationwide, tightening its grip on the industry.

“By December or early next year, Dangote stations will be everywhere,” one source predicted.

“They’ll take over non-functional stations and rebrand them.”

They concluded that the silent but powerful forces backing the refinery make it difficult for independent marketers to survive without urgent regulatory reforms.

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