Petrol Production at Dangote Refinery Affects European Market—OPEC
According to the Organisation of Petroleum Exporting Countries (OPEC), output of petroleum products at the Dangote Petroleum Refinery has reduced imports of refined goods from Europe.
In its Monthly Oil Market Report, issued on January 15, 2025, the worldwide organisation stated that with the refining operations of the Lagos-based refinery, petrol volumes generated in international markets will have to find new destinations.
“The current operational ramp-up operations at Nigeria’s new Dangote refinery, as well as its petrol exports to the international market, are likely to put additional pressure on the European petrol market.
“Continued petrol production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up petrol volumes in international markets, which will call for new destinations and flow adjustments for the extra volumes going forward,” the report’s first section stated.
Nigeria, Africa’s most populous country, is facing energy issues, with all of its state-owned refineries inoperable for decades until recently. The country relies significantly on imported refined petroleum products, with the state-owned NNPC being the primary importer of these critical commodities.
Fuel lineups are widespread throughout the country. Since President Bola Tinubu removed the petrol subsidy in May 2023, prices have risen fivefold from around ₦200/litre to around ₦1000/litre. This has compounded the woes of citizens who rely on petrol to power their vehicles and generators, despite decades of epileptic electricity supply.
In December 2023, Aliko Dangote, Africa’s leading industrialist, began operations at his $20 billion complex in Lagos, producing 350,000 barrels per day.
The refinery, which was previously stymied by regulatory disputes, wants to reach full capacity of 650,000 barrels per day by the end of the year.
The refinery has begun to deliver diesel, petrol, and aviation fuel to the country’s marketers.