Dangote Refinery Cuts Petrol Output by 34%, Marketers Turn to Imports
By Aboki Forex —
The Dangote Refinery has reduced petrol production by 34%, raising fresh supply concerns as global oil prices climb. Nigeria now faces renewed reliance on imported fuel as domestic refining slows.
Industry monitor IIR Energy reports that the refinery lowered operating rates at its Residual Fluid Catalytic Cracking Unit (RFCCU) since May 21. The unit is critical for converting heavy crude into petrol, diesel, and cooking gas.
Technical issues caused the slowdown. The refinery initially struggled with insufficient feedstock due to processing lighter crude grades. Engineers later discovered a fault with the RFCCU’s flue gas slide gate valve. Repair work is nearly complete, and the unit is expected to return to full operation by mid-June.
The impact is already visible in export data. Figures from commodities analytics firm Kpler show gasoline exports dropped to 17,000 barrels per day in May. In June, exports averaged just 10,000 barrels daily, down sharply from 81,000 barrels in April.
As local production falls, petroleum marketers are increasing imports of cheaper fuel. This has sparked fears that Nigeria could become heavily dependent on foreign supplies again, despite the launch of Africa’s biggest refinery.
The 700,000-barrel-per-day facility became fully operational earlier this year, aiming to end Nigeria’s long-standing reliance on imported petroleum products. It has since supplied fuel across Nigeria and West Africa, reshaping regional trade flows.
The production cut comes at a time of rising global oil prices due to Middle East tensions. For Nigeria, where fuel prices are tied to international crude rates and exchange rate swings, any drop in domestic refining could push costs higher for consumers already facing expensive transport and living expenses.
Industry stakeholders say the incident highlights how sensitive the country’s fuel market remains. The Dangote Refinery’s role in Nigeria’s energy security and Africa’s fuel supply chain is now more critical than ever.
Dangote Refinery officials have not yet commented publicly on the issue.