Nigeria’s Dangote Petroleum Refinery is increasing its gasoline exports across Africa as disruptions linked to the Iran conflict tighten global energy supply routes and reduce the flow of cheap imports that have long dominated West African markets, Reuters reported.
According to data from tanker-tracking firm Kpler, Nigeria’s exports of clean petroleum products, including gasoline, diesel, kerosene, and jet fuel, have risen to about 214,000 barrels per day so far in March, up from an average of 100,000 barrels per day in February.
Shipments to other African countries have also increased significantly, climbing to about 90,000 barrels per day from 38,000 barrels per day previously.
The 650,000 barrels-per-day Dangote refinery has sold 12 cargoes of premium motor spirit, totaling 456,000 metric tons, on a free-on-board basis to international traders.
These shipments have been delivered to Côte d’Ivoire, Cameroon, Tanzania, Ghana, and Togo, according to sources familiar with the transactions.
These sales represent Dangote’s first gasoline exports since the refinery reached full operational capacity in February.
The escalation of the Middle East conflict has driven up global crude oil prices, increasing feedstock costs for refiners worldwide.
At the same time, disruptions to shipping and reduced fuel availability from Europe and the Gulf have limited the supply of low-cost refined products into West Africa, creating opportunities for suppliers with shorter and more direct supply chains.
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Dangote’s owner, Aliko Dangote, has been in discussions with Nigerian regulators over ongoing petrol imports, which he argues weaken the competitiveness of his refinery.
Nigeria halted fuel imports last month, and since then, domestic pump prices have increased by more than 50% as the Iran conflict continues to affect global energy markets.
Nigeria consumes an estimated 50 million to 60 million litres of gasoline per day, accounting for nearly one-fifth of Africa’s total demand, making both availability and pricing highly sensitive to global market changes.
For decades, West Africa has relied heavily on imported fuel from Europe and the Middle East, often of lower quality, leaving the region exposed to delays and external supply shocks.
Preliminary Kpler data shows that Nigeria’s fuel imports have dropped to an average of 90,000 barrels per day in March, down from 209,000 barrels per day in February.
Imports arriving via offshore Togo, previously identified by Dangote as a source of imported “dirty fuel”, have fallen to zero so far in March, compared with 60,000 barrels per day in February.
As the Dangote refinery continues efforts to eliminate fuel imports, ongoing tensions in the Middle East are encouraging more local fuel traders to rely on domestic supply from the refinery.
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Image Credit: Reuters
