Aviation jet fuel from the Lagos-based Dangote refinery now dominates approximately two-thirds of Nigeria’s market, a recent report reveals.
According to data from Energy Intelligence, a US-based tracker of oil and gas trends, the 650,000 barrels per day (bpd) refinery has not only curtailed aviation fuel imports into Nigeria but also lowered prices by about $2 to $3 per metric ton.
“We’re already buying from Dangote 1729435210 it’s slightly cheaper or at least the same price as imports,” Asharami Synergy’s managing director, Foluso Sobanjo, told Energy Intelligence in an interview
Dangote’s jet fuel now accounts for at least two-thirds of Nigeria’s supply and nearly half of the jet fuel consumed across West Africa, based on Energy Intelligence estimates.
Nigeria’s jet fuel imports have plummeted from 13,000 b/d in 2023—when imports met the entire domestic demand—to just 5,000 b/d so far in 2024, the report shows.
The impact of the refinery extends beyond Nigeria, influencing other markets across West Africa.
The report notes that regional jet fuel imports from outside West Africa have fallen from 34,500 b/d in 2023 to just 17,900 b/d in 2024. Loading schedules indicate shipments of Dangote jet fuel heading to Benin, Senegal, Togo, The Gambia, and Gabon.
Airline Operators favour Dangote Jet
Nairametrics recently reported that the Minister of Aviation, Festus Keyamo, confirmed that airline operators have decided to source jet fuel exclusively from Dangote Refinery.
The Minister, who expressed his support for the decision, noted that it is expected to boost demand for Dangote’s products and further reduce Nigeria’s dependence on imported aviation fuel.
Aliko Dangote, the refinery’s CEO, has consistently emphasized his goal of curbing energy imports, which exert significant pressure on the nation’s limited foreign exchange reserves.
Projections suggest that Dangote Refinery’s operations could reduce foreign exchange demand by at least 40% once it begins supplying petrol to the market.
Keyamo also highlighted that the crude-for-naira agreement between the government and Dangote would ease price pressures on the product.
“The price will no longer be subjected to the varying factors of the international market, nor the headwinds of oil price in the international market. It will be in local currency so we can be clear as to the cost of it. We will buy in naira. I’m sure we are going to have access to cheaper Jet A1 fuel,” Keyamo said in an interview.
What you should know
Dangote Refinery has exported 1.1 million tons (35,000 barrels per day) of jet fuel since it began shipments in March, according to Kpler’s tanker tracking data.
Of these exports, nearly 290,000 tons were sent to Europe, 315,000 tons to South America, and the remainder primarily distributed across West Africa.
Exports have slowed slightly since September, however, reflecting a rise in domestic sales. Energy Intelligence reports that since April, an additional 94,000 tons of Dangote jet fuel have been shipped to Nigerian ports, predominantly Lagos.
The refinery’s management previously indicated that approximately 75% of its jet fuel output would be transported by sea, with the rest distributed inland via road tankers.
Recent assessments reveal that Dangote jet fuel now accounts for two-thirds of Nigeria’s total supply and nearly half of the jet fuel consumed across West Africa.
Leave a Comment