Nigeria’s fuel subsidy removal is affecting refineries far
away in Europe and threatening to squeeze European
refiners, Reuters is reporting.
The average monthly West African (WAF) gasoline
imports fell by 56 percent in the second quarter
compared with the first, according to Refinitiv Eikon
data.
North America and West Africa, with Nigeria at the top,
historically have been the top two destinations for petrol
exports from Europe (which produces more petrol than
it uses), Reuters said.
So far, benchmark profit margins for gasoline in
northwestern Europe have hovered at around $27 a
barrel, Reuters said, citing Refinitiv Eikon data.
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“They have been supported by demand from North
America, a shortage of high quality blending materials,
disruption caused by low water levels inland and local
refinery outages,” the report reads.
“But analysts say the reduction of flows following the
upheaval in Nigeria will increase pressure on European
refiners, and any winners are likely to be newer Middle
Eastern refineries.”
‘ONSHORE PETROL STOCKS ROSE AFTER
SUBSIDY REMOVAL ‘
At the end of May, President Bola Tinubu announced
that the petrol subsidy regime was over.
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Petrol demand in response fell by 35 percent, according
to the Nigerian Midstream and Downstream Petroleum
Regulatory Authority (NMDPRA).
According to Jeremy Parker of the CITAC consultancy,
which focuses on Africa’s downstream energy industry,
onshore petrol reserves in Nigeria have increased to
960,000 tonnes from an average of 613,000 tonnes
between January and June, signalling a decline in
demand.
“Meanwhile, the black market for smuggled subsidised
Nigerian fuel in Togo and neighbouring Benin and
Cameroon has collapsed, further reducing demand for
shipments via Nigeria,” Reuters said.
“There is no reliable data on how much fuel was
smuggled out of Nigeria under the subsidy regime, but
a comparison of estimates from official and
independent sources indicate more than a third of petrol
could have left state oil firm NNPC’s depots every day
to be sold illegally abroad.
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“Without the subsidy, the financial incentive for
smuggling disappears.”
“The key point is demand from West Africa is drying up,”
Reuters quoted Raj Rajendran, Refinitiv lead oil analyst,
as saying.
Nigeria, Africa’s largest crude oil producer, relies heavily
on imports because of its inadequate domestic refining
capacity.
“Imports, however, are increasingly unaffordable as
Nigeria’s naira has weakened to record lows since the
central bank removed currency restrictions in June. At
the same time, inflation is near two-decade highs,”
Reuters said.
“The huge, much-delayed Dangote refinery was
designed to address the domestic supply shortfall, but
full 650,000 barrel per day production is unlikely before
the second quarter of 2025, CITAC estimates.”
Regardless, it is possible that the demand for petrol
would not fully recover in the country, Analysts told
Reuters.

https://www.thecable.ng/report-nigerias-petrol-subsidy-removal-biting-european-refineries/amp

mynd44 oam4j lalasticlala seun nlfpmod

Nigeria the Giant of Africa
Next rank is the Giant of the world with Tinubu as President

God bless Jagaban

God bless Nigeria

.

The European countries have reservoirs of crudes they stole from Africa...... That can last them for centuries.


They should start refining those ones and resell them.

The corruption they pushed to Nigeria fighting anyone making efforts to repair the refineries will never be forgotten.

.

PROPAGANDA

Our mumu don do.,imagine a third of our refined subsidized petrol being smuggled...Nigeria subsidizing fuel for togo,ghana and benin.