A new report by S&P Global has revealed that the Dangote Petrochemical Refinery is now supplying up to 60% of Nigeria's domestic petrol demand, significantly reducing the country's reliance on imports.
Analysts credit Dangote's increasing output for reshaping the local fuel market. Ikemesit Effiong, a partner at SBM Intelligence, noted that several major retailers had switched to sourcing from the refinery, while some NNPC outlets faced supply gaps.
European exporters are feeling the impact of Nigeria's reduced import demand, though occasional refinery outages could still lead to fluctuations.
A brief issue at Dangote's Residue Fluid Catalytic Cracking (RFCC) unit in January spiked European gasoline shipments to Nigeria.
Despite its growing dominance, experts warn of potential disruptions due to the refinery's scale and operational complexity.
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Rasool Barouni, refining head at Commodity Insights, highlighted the high costs and logistical challenges involved, particularly in managing catalysts and distribution.
Currently, Dangote Refinery supplies the market through a mix of trucking and marine deliveries, though road freight capacity remains limited. Market observers believe the refinery is close to establishing full dominance in domestic petrol supply.
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