The volume of Premium Motor Spirit PMS imported into Nigeria saw a significant decrease in October 2024, indicating progress towards achieving self-sufficiency in petrol production. This decline was attributed to increased PMS production by the Dangote Refinery, particularly in the first two weeks of October.
Data from S P Global Commodity Insights revealed that 280,400 barrels of gasoline and blend stock were imported into Nigeria during the first week of October 2024, ending on the 6th. Subsequently, another vessel, a product tanker from Antwerp, transported 290,567 barrels of gasoline to Nigeria in the week ending October 13.
This development aligns with previous reports by the Organisation of Petroleum Exporting Countries OPEC regarding the potential impact of the Dangote refinerys operations on market dynamics.
OPECs monthly Oil Market Report for June 2024 forecasted that the Dangote Refinery and Petrochemicals would exert significant pressure on Europes oil industry, particularly the Northwest Europe NWE Gasoil sector. This projection underscores the global implications of Nigerias increasing self-sufficiency in petrol production.
Reuters reported that about a third of Europes 1.33 million barrels per day BPD average gasoline exports in 2023 were directed to West Africa, with a significant portion ending up in Nigeria. The potential loss of this market, combined with new environmental regulations in Northwest Europe, could compel many plants to reconfigure, explore new markets for lower-quality gasoline, or cease operations altogether.
