NNPC Deploys 100 Trucks to Dangote Refinery as Petrol Distribution Begins

In preparation for petrol loading at the Dangote Refinery on Sunday, 15 September 2024, the Nigerian National Petroleum Company (NNPC) Limited has deployed 100 trucks to the refinery’s fuel loading gantry in Ibeju-Lekki, Lagos.

The state-owned oil company announced via its official X account (formerly Twitter) that over 100 trucks had been sent to the facility, with hundreds more on the way as of Saturday afternoon.

The Dangote Refinery is set to begin distributing refined petrol to retail outlets across Nigeria from Sunday. Sources indicated that despite the introduction of the refinery’s petrol to the market, pump prices will remain unchanged.

An initial daily allocation of 25 million litres is expected to be delivered through NNPC Trading Limited for ₦765.99 to marketers. A source added that NNPC Trading Limited would continue importing a shortfall of 15 million litres to meet Nigeria’s estimated daily petrol demand of 40-50 million litres.

Dangote’s petrol production is expected to impact billions of dollars in regional and global fuel trade, as Nigeria remains a major fuel importer. Last year, the country imported nearly 250,000 barrels per day, mainly from Europe, according to data from analytics firm Vortexa Ltd.

For decades, European refiners have profited from Nigeria’s dependence on imported refined products, driven by unreliable electricity supply in Africa’s fourth-largest economy. This import market is valued at $17 billion annually.

“As much as 300-400,000 barrels per day (bpd) of refining capacity in Europe is at risk of closure due to rising global gasoline production,” Andon Pavlov, an analyst at global trade intelligence platform Kpler, noted.