OPEC reports that the Dangote Refinery's fuel production, particularly gasoline, is impacting the European market. The refinery's operational ramp-up has reduced Nigeria's reliance on imports, leading to shifts in international fuel trade. The refinery is expected to continue affecting global gasoline flows, especially in Europe.
The Dangote Refinery’s fuel production, including gasoline, is significantly affecting global markets, particularly in Europe. According to OPEC, the refinery’s increased output is reducing Nigeria’s reliance on fuel imports, creating shifts in the international gasoline trade. As the refinery continues ramping up production, it is expected to impact European gasoline demand and export flow adjustments.
Operating at 650,000 barrels per day, Dangote Refinery started rolling out Premium Motor Spirit (PMS) in September 2024. The refinery’s success is affecting the balance of imports and exports, freeing up gasoline volumes in the global market. This has led to adjustments in supply chains, particularly in European markets that traditionally supplied gasoline to Nigeria.
The ongoing production at Dangote Refinery is reshaping the dynamics of fuel trade, with the potential to significantly change the flow of petroleum products internationally. OPEC's report highlights that while Nigeria previously relied on imports for fuel, the refinery’s contribution has reduced this need, further impacting the European market's fuel strategy.
The refinery’s price cuts in November 2024 also led to a reduction in local fuel prices, benefiting Nigerian consumers, while also altering international trade dynamics. As the refinery grows in production capacity, its influence on the global fuel market, including Europe, is expected to continue.
