OPEC: Dangote Refinery’s Petrol Production Disrupts European Market

The Dangote Refinery’s petrol production is reportedly impacting the European fuel market, OPEC reveals, highlighting the refinery’s growing influence on global oil dynamics.

The Dangote Petroleum Refinery’s production of petroleum products has led to a decrease in the importation of refined goods from Europe, according to the Organisation of the Petroleum Exporting Countries (OPEC).

In its Monthly Oil Market Report released on January 15, 2025, the global organization stated that due to increased refining activities at the Lagos-based refinery, gasoline volumes produced in international markets will need to be redirected to new destination markets.

The continuous increase in operations at Nigeria’s new Dangote refinery, along with its gasoline exports to the global market, is expected to put additional pressure on the European gasoline market.

The report indicated that as Nigeria continues to produce gasoline domestically—a shift from its past dependence on imports—additional volumes are expected in international markets. This will require identifying new destinations and adjusting flows for these surplus quantities moving forward.

NNPCL trucks are queued for petrol loading at the Dangote Refinery. X/@nnpclimited

Nigeria, the most populous country in Africa, has been grappling with energy challenges. Its state-owned refineries were non-operational for decades until recently. Consequently, Nigeria has had to depend heavily on imported refined petroleum products, with the government-operated NNPC serving as the primary importer of these crucial commodities.

Fuel queues have become a common sight in the country. Since President Bola Tinubu removed the subsidy in May 2023, petrol prices have increased fivefold—from approximately ₦200 per liter to around ₦1000 per liter. This situation has worsened conditions for citizens who rely on petrol to power their vehicles and generators due to decades of unreliable electricity supply.

In December 2023, Aliko Dangote, a prominent industrialist from Africa, began operations at his $20 billion facility located in Lagos. The plant has the capacity to process 350,000 barrels per day.

The refinery, initially hindered by regulatory disputes, aims to reach its full capacity of 650,000 barrels per day by year-end.

The refinery has started supplying diesel, petrol, and aviation fuel to marketers nationwide.