Dangote Takes Over Nigeria’s Aviation Fuel Market as Marketers Begin Petrol Price Negotiation
- A new report has shown that Aliko Dangote's refinery now controls two-thirds of the jet fuel market in Nigeria
- The report also stated that the billionaire's refinery supplies half of West Africa’s jet fuel needs
- It noted that the refinery not only reduced jet fuel importation but also sold the product cheaper than imported ones
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
A US-based oil and gas tracker trends, Energy Intelligence, has stated that the aviation fuel from the Dangote Refinery now dominates about two-thirds of Nigeria’s market.
The report, released on Sunday, October 20, 2024, disclosed that the refinery reduced aviation fuel imports and crashed its prices by about $2 to $3 per metric tonne.
Source: Facebook
Marketers speak on reduced prices
According to the report, Asharami Synergy’s managing director, Folusho Sobanjo, said that aviation fuel dealers now buy from the refinery at a slightly reduced price, cheaper than imported products.
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The report said the refinery’s jet fuel accounts for at least two-thirds of Nigeria’s supply and almost half of the jet fuel used across West Africa.
It said:
“Nigeria’s jet fuel imports have plummeted from 13,000 b/d in 2023—when imports met the entire domestic demand—to just 5,000 b/d in 2024.
Dangote refinery dominates the West African market
The report disclosed that the refinery’s impact extends beyond Nigeria, impacting other West African markets.
It said regional jet fuel imports outside West Africa have declined from 34,500 barrels per day in 2023 to just about 17,900 barrels per day in 2024.
Read also
Oil marketers promise to crash petrol prices as negotiations with Dangote refinery continue
Loading schedules show shipments of Dangote jet fuel heading to Benin, Senegal, Togo, the Gambia, and Gabon.
OPEC says two refineries to disrupt the market
A previous report by Legit.ng said that the Organisation of Petroleum Exporting Countries (OPEC) has revealed that the take-off of Dangote’s refinery in Nigeria and Dos Bocas refinery in Mexico would impact US and European plants.
Until now, the two countries and other African countries were the major destinations for petrol produced in the US and Europe.
Findings show that the Dos Bocas plant is a 340,000 bpd-capacity refinery, thus making Mexico self-sufficient in refined petroleum products.
Nigeria’s Dangote Refinery is a 650,000 bpd-capacity refinery to meet the petrol needs in Nigeria and West Africa.
OPEC revealed in its latest 2024 World Oil Outlook for 20250 that new mega projects are set to change the international downstream market, stating that the start of the Dangote refinery in Nigeria and the beginning of commercial operations of the Dos Bocas refinery in Mexico could affect the petrol market in the Atlantic basin.
Dangote refinery to disrupt jet fuel and diesel markets
OPEC also predicted that the Organisation of Petroleum Exporting Countries (OPEC) would indicate that Nigeria’s Dangote Refinery would impact Europe’s oil industry, especially in the Northwest European gasoil market.
The 650,000 bpd-capacity refinery in Nigeria is expected to disrupt traditional diesel and jet suppliers, putting pressure on Europe’s refined petroleum product market.
Dangote Refinery is Europe’s biggest challenger
In its June Oil Market Report, OPEC identified the Dangote Refinery as a crucial player among global suppliers. Potential production increases are expected to challenge Europe’s reliance on established sources.
Marketers import 123 million litres of petrol
Legit.ng earlier reported that about four vessels carrying imported petrol arrived at Nigeria’s seaports on Friday. October 18, 2024, and Sunday, October 20, 2024.
A Nigerian Ports Authority (NPA) document on Sunday, October 20, 2024, shows that about 123.4 million litres of PMS arrived at two seaports to improve fuel supply nationwide.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
