Dangote Refinery increases local production, cuts fuel imports to record low

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Nigeria’s fuel imports have significantly decreased due to the Dangote Refinery’s increased output. According to Kpler data, June marked the lowest level of petrol shipments from Europe to Nigeria since tracking began. The refinery’s production has reduced demand for European gasoline imports, with imports dropping to 231,000 metric tons, a 56% decrease from the previous month.

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The Dangote Refinery has started exporting petrol in substantial volumes, loading 252,000 metric tons in June to countries like Oman, Malaysia, and the Ivory Coast. This development positions Nigeria to potentially become a net exporter of petrol. Edwin Devakumar, Executive Director at Dangote Group, stated that the refinery has surplus capacity and has begun importing naphtha to enhance gasoline output

The refinery plans to rely entirely on Nigerian crude oil by the end of 2025, potentially displacing hundreds of thousands of barrels of imported crude daily. As of June, the refinery sourced 53% of its crude supply from domestic producers and 47% from the US. Dangote is scheduled to receive five cargoes from the Nigerian National Petroleum Company Limited in July and August, each holding almost a million barrels of crude.

The increased local refining capacity has led to a decrease in Nigeria’s petrol import bill, with a 54% decline in Q1 2025 compared to the same period in 2024. The Dangote Refinery’s ex-depot petrol price has also decreased to N820 per liter, a N20 reduction. The refinery’s impact on the fuel market is substantial, potentially saving Nigeria around $6 billion annually in foreign exchange and reducing inflationary pressures

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