Yemisi Izuora
The Organisation of Petroleum Exporting Countries (OPEC) has highlighted the
the significant impact of Dangote refinery, pointing that the export of Dangote petrol, diesel, and aviation fuel to both African and international markets, has disrupted established supply chains.
This shift has led to declining petroleum product imports into Nigeria and affected Europe’s gasoline inventory levels.
“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline (petrol) exports to the international market will likely weigh further on the European gasoline market.
“Continued gasoline 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 gasoline volumes in international markets which will call for new destinations and flow adjustments for the extra volumes going forward”, OPEC said in its monthly Oil Market report released mid week.
The Dangote Refinery, is reportedly the world’s largest single-train refinery. Operational since January 2024, the refinery, with a daily refining capacity of 650,000 barrels, began producing petrol in September 2024, marking a significant shift for Nigeria, which previously relied heavily on fuel imports.
In its monthly Oil Market report released on Wednesday, OPEC noted that the production of petroleum products by the Dangote Petroleum Refinery has reduced the importation of refined products from Europe.
Latest data from the oil cartel indicates the refinery’s growing Premium Motor Spirit (PMS) production and exports are reshaping trade flows, challenging Europe’s dominance in fuel exports to Nigeria.