The Organisation of the Petroleum Exporting Countries (OPEC) has highlighted the significant influence of Nigeria’s Dangote Petroleum Refinery on the European petrol market. According to OPEC’s latest report released on Wednesday, the refinery’s operations have reduced Nigeria’s dependence on imported petroleum products, reshaping global gasoline trade flows.
The 650,000-barrel-per-day Dangote Refinery, which began producing Premium Motor Spirit (PMS) on September 15, has not only bolstered Nigeria’s domestic fuel supply but also contributed to freeing up gasoline volumes in international markets.
“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market,” OPEC stated. “Continued gasoline production in Nigeria will most likely continue to free up gasoline volumes in international markets, calling for new destinations and flow adjustments for the extra volumes going forward.”
This development marks a shift in Nigeria’s fuel supply dynamics, with the country transitioning from being heavily reliant on imports to producing enough for both domestic consumption and exports. OPEC further noted that the decrease in Nigeria’s oil product imports has improved its external sector outlook, particularly in the fourth quarter of 2024.
The $20 billion refinery, located in Lekki, Lagos, has been making strides to meet global standards and demands. In November, Dangote Refinery reduced its ex-depot petrol price to ₦899.50 per liter and partnered with MRS filling stations to offer petrol at ₦935 per liter. This move prompted the Nigerian National Petroleum Company (NNPC) to lower its PMS price to ₦965 per liter.
Currently, petrol prices across Nigeria range from ₦935 to ₦1,100 per liter. The Dangote Refinery’s competitive pricing and production capabilities have positioned it as a game-changer in Nigeria’s oil and gas sector while impacting global fuel trade patterns.
With production ramping up, the Dangote Refinery is expected to play an increasingly pivotal role in both local and international markets, fostering economic growth and energy security for Nigeria.
