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The Organisation of the Petroleum Exporting Countries (OPEC) has highlighted the impact of petroleum production at Nigeria’s Dangote Petroleum Refinery on the European market.
According to OPEC’s Monthly Oil Market Report, published on January 15, 2025, the refinery’s growing output has reduced the importation of refined products from Europe.
OPEC noted that the refinery’s export of gasoline to international markets has disrupted the usual flow of gasoline volumes, requiring European producers to seek alternative markets.
“The ongoing operational ramp-up at Nigeria’s new Dangote Refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market,” the report stated.
The report further explained that Nigeria’s increased domestic production of refined products, especially gasoline, is altering the dynamics of global supply chains.
It emphasised that the shift would necessitate adjustments in the destination markets for surplus gasoline volumes.
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Nigeria, despite being Africa’s largest oil producer, has historically depended on imported refined petroleum products due to the decades-long non-functionality of its state-owned refineries.
This reliance has subjected the nation to recurring fuel shortages and sharp price increases.
Following the removal of fuel subsidies in May 2023, petrol prices surged from N200/litre to nearly N1000/litre, exacerbating economic pressures on citizens already grappling with inadequate electricity supply.
In December 2023, Africa’s leading industrialist, Aliko Dangote, launched operations at his $20 billion refinery in Lagos.
Initially planned to refine 650,000 barrels per day, the facility currently processes 350,000 barrels daily, to achieve full capacity by the end of 2025.
The Dangote Refinery has commenced the supply of diesel, petrol, and aviation fuel to Nigerian marketers, representing a significant step towards addressing the country’s energy challenges and reducing its dependence on imports.
