Petrol imports hit 8-year low as Dangote ramps up

Nigeria’s petrol imports have dropped to their lowest level in eight years, a significant shift attributed to the ramp-up in production at the Dangote Refinery.

Africa’s biggest oil-producing country, traditionally reliant on imported fuel to meet domestic demand, has seen a marked decline in the volume of petrol entering the country, signalling a transformative phase for the Nigerian energy sector.

Shipments into the West African nation stood at about 110,000 barrels-a-day during January 1-24, data compiled by Bloomberg from analytics firm Vortexa Ltd showed.

Bloomberg calculations showed if that rate were to continue for the rest of the month, the country’s imports, most of which come from Europe, would hit their lowest since 2017.

“A large part of the slowdown in Nigeria’s gasoline imports is due to the ramp-up of the Dangote refinery,” Vortexa analyst Samantha Hartke said. “Northwest Europe will have to find alternative homes for its gasoline supplies.”

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Dangote is bigger than any other refinery in Europe or Africa and has been touted as a way for Nigeria—long reliant on petrol imports—to become less dependent on foreign supplies.

Stockpiles of gasoline held in independent storage in Amsterdam-Rotterdam-Antwerp — a key exporting hub for barrels to Nigeria — have meanwhile hit a record high, according to figures from Insights Global.

According to the latest competency centre daily energy data released by the Major Energies Marketers Association of Nigeria, the on-spot estimated import parity into tanks was N922.65 per litre.

The average cost for 30 days stood at N939.52 per litre.

The document also noted that the price of Brent crude was benchmarked at $78.29 per barrel, down from $78.88 per barrel the previous day, with an exchange rate of N1,550 per dollar.

This cost is an improvement for importers, providing private depot owners and independent marketers with an alternative route to profitability and the opportunity to source cheaper products.