By Abiola Olawale
The Organization of Petroleum Exporting Countries (OPEC) has declared that the Dangote Petroleum Refinery, owned by Africa’s richest man and business mogul, Alhaji Aliko Dangote, has begun to influence the European petroleum markets.
In a report issued by OPEC, the operational ramp-up at the refinery and its export of petrol to international markets have been putting pressure on the European gasoline market.
The organisation stated that the influence stemmed from Nigeria’s reduced dependency on imported petroleum products from Europe, as the Dangote Refinery now produces and exports petrol, diesel, and aviation fuel.
OPEC also explained that the increased production in Nigeria resulted in surplus volumes of gasoline in the international market, which necessitates new destinations and adjustments in trade flows.
In its Monthly Oil Market Report published on January 15, 2025, the global body said with the refining efforts of the Lagos-based refinery, gasoline volumes produced in the international markets would have to find new destination markets.
“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market.
“Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets which will call for new destinations and flow adjustments for the extra volumes going forward,” the report partly read.
The New Diplomat reports that in December 2023, Dangote, one of Africa’s leading industrialists, commenced operations at his $20bn oil production facility sited in Lagos with 350,000 barrels a day.
The refinery has begun the supply of diesel, petrol and aviation fuel to marketers in the country.
