Revolution in Nigeria: Dangote, not importers, will soon set fuel prices in the country
Nigeria may soon let its new refinery, Africa's largest crude processing plant, set the price of gasoline it sells to distributors, in a major shift in political control over fuel prices.
According to Bloomberg's anonymous sources, starting next month the Dangote refinery – which has yet to produce petrol – could start setting the price of the fuel it sells to distributors. So far, Nigeria has imported all the petrol it consumes. The government subsidized the price of fuel, resulting in a huge budget expense.
The Dangote refinery will soon begin producing gasoline, potentially disrupting global gasoline flows. By setting prices, it will revolutionize the Nigerian market, which until now has been conditioned by the prices imposed by importers.
The new refinery is ready to transform Africa's largest OPEC crude oil producer from a petrol importer to an exporter, with an impact on the balance of the fuel market, especially in Europe .
The Dangote refinery began fuel production in January 2024, marking the start-up of the plant that has seen years of delays.
The refinery, which has a processing capacity of 650,000 barrels per day (bpd), will meet 100% of Nigeria's demand for all refined petroleum products and will also have a surplus of each of the products for export.
It is expected that once the refinery is fully operational in 2025, more than half of its processing capacity will be dedicated to producing gasoline.
In mid-June, Dangote Group president Aliko Dangote said the refinery would delay the start of gasoline deliveries after mid-July.
At the time, Dangote, Africa's richest man, said the refinery would be able to bring gasoline to market by the third week of July.
This timeline has slipped and most industry analysts expect petrol from Nigeria to reach international markets in considerable volumes next year.
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The article Revolution in Nigeria: soon Dangote, and not importers, will set fuel prices in the country comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/rivoluzione-in-nigeria-presto-dangote-e-non-gli-importatori-stabiliranno-i-prezzi-dei-carburanti-nel-paese/ on Fri, 06 Sep 2024 06:00:57 +0000.