Petrol Imports Crash as Dangote Slashes Price, Announces Expansion to Other Countries
Petrol imports by Nigerian oil marketers dropped to a record low in June, largely due to increased domestic supply from the Dangote Petroleum Refinery
- The refinery's growing output is transforming Nigeria from a major petroleum importer to a potential net exporter by 2025
- Additionally, Dangote is expanding its presence outside Nigeria by planning fuel storage facilities in Namibia to supply Southern African markets
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Nigerian oil marketers’ imports of Premium Motor Spirit (PMS), also known as gasoline, fell to a record low in June, driven primarily by a surge in production from the 650,000-barrel-per-day Dangote Petroleum Refinery, according to new data.
Source: UGC
According to an Argus article citing Kpler tracking data on Tuesday, July 8, 2025, the Dangote refinery's increasing output significantly decreased demand for the product from Norway, the United Kingdom, and European Union nations, which are traditional exporters of refined gasoline to Nigeria.
June was the lowest volume of gasoline exports from Europe to Nigeria since tracking started, according to Kpler statistics, underscoring the growing influence of domestic refining on the fuel import profile of the nation.
Overall West African imports of European gasoline fell to 926,000 metric tons, a four-month low, from 1.315 million metric tonnes in May, and were 20% lower year over year due to a decline in purchases by Nigerian importers.
According to the report, the nation, which has long been the biggest importer of gasoline in the region, fell behind Togo last month when the Dangote refinery achieved its highest monthly run rate since it went online.
The nation's gasoline trade balance is about to undergo a sea change. June saw a 56% decrease in European arrivals in Nigeria, reaching a record low of 231,000 metric tonnes, according to Kpler.
Additionally, Punch reported that it imported 12,000 metric tons from Houston and 28,000 metric tons from offshore Lome, for a total of 271,000 metric tons, or 363,411,000 liters. Dangote loaded a record 252,000 metric tons of petroleum for export last month at the same time.
The refinery exported goods to Oman, Malaysia, and the Ivory Coast, according to the report. 90,000 meter tons were shipped to Sohar, Oman, via the Pis Kerinci; 89,000 metric tons were shipped to Pasir Gudang, Malaysia, via the Hafnia Larissa; 35,000 metric tons were shipped to Abidjan, Ivory Coast, via the Sabaek; and an additional 39,000 metric tons were shipped on the Sabaek, which has not yet released its cargo.
Given that the Dangote refinery has "extra plant capacity to produce gasoline," the nation may be about to transition to net exporter status, according to Edwin Devakumar, executive director of the Dangote Group.
The plant’s naphtha hydrotreating unit has “flexibility to achieve additional production”, and Dangote has recently begun buying naphtha to support gasoline output, he said.
Dangote to buy Nigerian crude only
Edwin noted that the refinery expects to rely entirely on Nigerian crude oil by the end of 2025, potentially displacing hundreds of thousands of barrels of imported crude daily.
According to Bloomberg report, the refinery received about half of its crude in June from local producers who will be able to sell more to the facility as their foreign supply obligations end.
Source: UGC
He said:
“We expect some of the long-term contracts will expire. Personally, and as a company, we expect that before the end of the year, we can transition 100 per cent to local crude.”
Since the Dangote facility opened, the company has bought crude from Brazil, Angola, Ghana, and Equatorial Guinea, according to Edwin. Improved relations between the refinery, local oil traders, and the government will result in a steady supply of Nigerian crude, he said.
That still requires a significant increase in local oil over the coming months. In June, the refinery sourced 53 per cent of its crude supply from domestic producers and 47 per cent from the US, according to Bloomberg.
The ex-depot price of gasoline has been lowered by the Dangote Petroleum Refinery to N820 per liter. The figure decreased by N20, or 2.15 percent, according to PetroleumPrice.ng.
Dangote refinery expands to another country
Legit.ng earlier reported that Dangote Refinery announced plans to build extensive fuel storage facilities in Namibia, with a minimum capacity of 1.6 million barrels of petrol and diesel.
The refinery already begun these plans as part of its larger goal to provide refined petroleum products to key Southern African markets, thereby increasing its presence outside Nigeria.
The move showed the refinery's ambition to control the fuel supply across Africa and beyond, potentially altering regional energy trade patterns and improving southern African countries' access to refined goods.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
