There has been a drastic decrease in the amount of imported fuel in West Africa due to scale-up of production at the Dangote Petroleum Refinery.
As per reports from S&P Global, there was a reduction of almost 23 percent, i.e., a drop from 997,000 to 765,000 barrels per day in May in the imports of clean petroleum products in West Africa compared to the previous month of April.
According to the latest shipping data, the level of importation of fuels has dropped even more drastically. In fact, imports of fuel have been reduced by up to 44 percent, as Dangote’s 650,000 barrels per day refinery becomes fully operational.
This effect has especially been seen through a decline in shipments through tankers. Product tankers, particularly long-range vessels, have recorded the largest fall in movement – almost up to 88 percent.
Medium-range tankers were least impacted, though analysts agree that the established routes for the fuel trade, especially those linking Europe with Nigeria, are becoming obsolete due to growing local production capacities.
The fully operational refinery is now able to satisfy most of Nigeria’s domestic fuel requirements. Official statistics show that in April alone, it provided around 80 per cent of the country’s gasoline consumption.
Apart from reducing the import bill, this refinery is now positioning Nigeria as an exporter of fuel in the region. Fuel products are now being exported by sea from Lagos port to neighboring countries such as Ghana, Togo, and Ivory Coast, as well as Europe, the USA, and even Asia.
These developments are bringing about a transformation of global routes with the substitution of long-haul shipments with regional ones.
According to analysts, the emergence is seen as a big milestone in the world of Atlantic fuels, while at the same time posing a great danger to established fuel centers such as Lomé, which might find it difficult to regain their lost capacity due to this shift in the fuel supply chain.
The increasing fuel exports and reducing fuel imports have made Dangote Refinery a leading player in the West African fuel industry.
