A recent report by Argus Media has revealed that Nigeria imported an average of 78,000 barrels per day of petrol between April and August. This occurred even as the Dangote Petroleum Refinery exported some of its gasoline output to other markets when favourable trading opportunities emerged. The report highlights the complex dynamics of Nigeria's fuel market, where domestic demand, production, and market opportunities influence the movement of petroleum products.
The Dangote refinery has significantly increased its supply of petroleum products to West African countries. In September, deliveries reached a record 172,000 barrels per day, according to George Mayer-Bonnett, Deputy Editor, Oil Products at Argus Media. This represents an increase from the previous record of 152,000 barrels per day in August. The shipments covered various countries across the region, from Senegal to Angola, and included petrol, diesel, gasoil, and jet fuel.
Nigeria's average petrol consumption stood at 279,000 barrels per day during the five-month period, exceeding the Dangote refinery's average output of 258,000 barrels per day. However, the country's reliance on imports continued, with 78,000 barrels per day of petrol being imported over the same period. This allowed the refinery to export some of its production when regional trading opportunities emerged.
The refinery's deliveries to West African markets comprised 62,000 barrels per day of petrol, 57,000 barrels per day of diesel and gasoil, and 36,000 barrels per day of jet fuel. Other clean petroleum products accounted for a further 17,000 barrels per day. These figures underscore the refinery's growing role in supplying West African fuel markets, although the region still relies heavily on imports from outside the region.
West Africa received 516,000 barrels per day of refined petroleum products from external suppliers in September, according to Kpler data. This volume was the second-lowest monthly level since the end of 2017. Imports from the European Union, the United Kingdom, and Norway fell to a five-month low of 282,000 barrels per day. The report attributes the refinery's growing product supply to increased crude receipts at the Lekki plant.
Argus tracking showed that crude receipts at the refinery averaged a record 665,000 barrels per day in September, surpassing the previous high of 660,000 barrels per day recorded in June. The refinery's production of diesel and jet fuel exceeded domestic demand, creating opportunities for exports. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that Dangote's diesel output averaged 130,000 barrels per day between April and August.
The Dangote Group claimed it was producing more petrol than Nigeria could consume. Despite higher domestic demand, the refinery was able to export some of its gasoline production when regional trading opportunities emerged. The report concluded that Nigeria's consumption remained higher than Dangote's output, while imports continued to supplement domestic supply.
Key points
- Nigeria imported 78,000 barrels per day of petrol between April and August.
- Dangote refinery increased supply to West African countries, reaching a record 172,000 barrels per day in September.
- The refinery's production of diesel and jet fuel exceeded domestic demand, allowing for exports.
