Organisation of the Petroleum Exporting Countries (OPEC) has said the operations of the Dangote Petroleum Refinery are significantly affecting the Premium Motor Spirit (PMS) market in Europe.
The introduction of the Dangote refinery has led to a decrease in the importation of petroleum products from Europe to Nigeria, according to OPEC’s recent findings published on Wednesday.
“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline (petrol) 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.”
In the fourth quarter of 2024, OPEC said, “Imports also declined, particularly oil product imports, improving the outlook for the external sector.”
The Dangote Refinery, which has a production capacity of 650,000 barrels per day, commenced the distribution of Premium Motor Spirit on September 15, marking a notable development in Nigeria’s oil and gas sector. Located in Lekki, Lagos, the $20 billion refinery continues to enhance its production to cater to both domestic and international petrol demands.
In November, Dangote Petroleum Refinery lowered its ex-depot price of petrol to N899.50 per litre. Following this adjustment, Dangote entered into a partnership with MRS filling stations to offer petrol at N935 per litre. This price reduction prompted the Nigerian National Petroleum Company (NNPC) to also lower its PMS price to N965 per litre, reflecting the competitive dynamics in the market.
