OPEC Reports Dangote Refinery’s Impact on European Gasoline Market
The Organisation of the Petroleum Exporting Countries (OPEC) has highlighted the significant impact of Dangote Petroleum Refinery’s operations on the Premium Motor Spirit (PMS) market, particularly in Europe. According to OPEC’s latest report, the growing production capacity at the Dangote refinery is reshaping the international gasoline market by reducing the need for petroleum product imports from Europe to Nigeria.
The report emphasized that the ongoing operational ramp-up at the Dangote refinery, along with its growing gasoline exports, is likely to put additional pressure on the European gasoline market. This, in turn, is expected to create new challenges in adjusting gasoline flows and finding alternative markets for the surplus volumes.
As Nigeria continues to produce more gasoline domestically, having previously relied heavily on imports to meet its fuel demands, this increased supply will likely free up gasoline volumes in international markets. OPEC predicts that the redistribution of these extra volumes will necessitate the search for new destinations for the exported gasoline.
In the fourth quarter of 2024, OPEC noted that oil product imports, including gasoline, declined significantly, contributing to an improved outlook for Nigeria’s external sector.
Dangote Refinery, located in Lekki, Lagos, with a production capacity of 650,000 barrels per day, began rolling out PMS on September 15, 2024. This marked a major milestone for Nigeria’s oil and gas sector. The refinery continues to ramp up production to meet both domestic and international petrol demands.
In November 2024, Dangote reduced its ex-depot price of petrol to N899.50 per litre, a move that prompted the Nigerian National Petroleum Company (NNPC) to lower its own PMS price to N965 per litre. As a result, petrol prices in Nigeria now range from N935 to N1,100 per litre across the country.
