Dangote Refinery Exports Jet Fuel Amid High Local Costs
The Dangote refinery is exporting most of its jet fuel to Europe to capture high margins. Meanwhile, Nigerian airlines face rising prices and potential groundings.
The massive Dangote Industries refinery in Nigeria is currently reaping the rewards of record-breaking margins on jet fuel production. While the facility was designed to transform the nation into a net exporter of refined products and eliminate its dependence on foreign imports, the domestic aviation sector is facing a severe crisis due to surging costs.
Operating at its full capacity of 650,000 barrels per day, the refinery has significantly improved local fuel availability. However, because the market is fully deregulated, prices remain among the highest on the continent. The situation is further strained by the fact that the state-owned Nigerian National Petroleum Company Limited has much of its crude production tied up in debt-repayment deals with international majors and banks. Consequently, the refinery must source a significant portion of its raw materials from the United States, Brazil, and other African producers.
