Dangote Refinery Reduces Petrol Production, Marketers Import Cheaper Fuel

• Dangote Refinery has cut petrol production by 34%, raising supply concerns amidst global oil price hikes
• Nigeria faces renewed fuel import reliance as domestic production slows and prices fluctuate
• Operational issues at Africa's largest refinery highlight the critical role in Nigeria's energy security and market stability

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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Nigeria’s fuel market is facing renewed uncertainty after the Dangote Refinery reportedly reduced petrol production, prompting fuel marketers to increase imports of cheaper products amid concerns over supply stability.

The development comes at a sensitive period for global energy markets, with rising crude oil prices and geopolitical tensions already putting pressure on fuel costs worldwide.

Dangote Refinery cuts petrol output

According to industry monitor IIR Energy, the Dangote Refinery has reduced operating rates at its key gasoline-producing unit, the Residual Fluid Catalytic Cracking Unit (RFCCU), by about 34% since May 21.

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The reduction is linked to technical issues affecting the unit, which plays a major role in converting heavy crude residues into valuable products such as petrol, diesel and cooking gas.

Reuters quoted IIR Energy as saying that the refinery initially struggled with insufficient feedstock due to the processing of lighter crude grades. However, the situation reportedly worsened after engineers discovered a fault involving the RFCCU’s flue gas slide gate valve.

“Repair work on that issue is almost complete,” IIR Energy said, adding that the gasoline-producing unit is expected to return to full operating rates by mid-June.

Officials of the Dangote Refinery have yet to issue a public response on the matter.

Why the RFCCU is critical

The RFCCU is regarded as one of the most important components of a modern refinery because it maximises fuel production from every barrel of crude oil processed.

Any disruption to the unit can significantly reduce petrol output and affect exports, refinery profitability and fuel availability in the market.

The impact of the temporary slowdown is already becoming visible in export data.

Figures from commodities analytics firm Kpler show that gasoline exports from the refinery dropped sharply to 17,000 barrels per day in May. So far in June, exports have averaged just 10,000 barrels daily, a steep decline from the 81,000 barrels recorded in April.

Marketers turn to imported fuel

As local production slows, petroleum marketers are increasingly turning to imported fuel, particularly products considered cheaper than locally refined petrol.

The renewed import activity has sparked concerns that Nigeria could once again become heavily dependent on foreign fuel supplies despite the launch of Africa’s biggest refinery.

Industry stakeholders say the situation highlights how sensitive the country’s fuel market remains, especially as consumers continue to battle fluctuating petrol prices.

Refinery reshaping Africa’s energy market

The 700,000-barrel-per-day Dangote Refinery is Africa’s largest refinery and the world’s biggest single-train refining facility.

After years of construction and multi-billion-dollar investments, the refinery became fully operational earlier this year, intending to end Nigeria’s long-standing dependence on imported petroleum products.

Since ramping up operations, the facility has increasingly supplied fuel across Nigeria and West Africa, reshaping regional fuel trade flows that European refiners once dominated.

The refinery has also emerged as one of Africa’s fastest-growing exporters of refined petroleum products, making any operational disruption a major concern for traders and governments across the continent.

Rising global oil tensions add pressure

The production cut comes as global oil prices continue to rise amid escalating tensions in the Middle East.

For Nigeria, where fuel prices remain heavily influenced by international crude prices and exchange-rate fluctuations, any decline in domestic refining output could place additional pressure on consumers already struggling with high transportation and living costs.

Although repairs at the refinery are nearing completion, analysts say the incident underscores the growing importance of the Dangote Refinery to Nigeria’s energy security and Africa’s wider fuel supply chain.

Petrol landing cost crashes by over N100 per litre

Earlier, Legit.ng reported that the cost of importing petrol into Nigeria has dropped sharply following the recent decline in global crude oil prices, creating fresh competition for local refiners, including the $20 billion Dangote Refinery.

New data released by the Major Energy Marketers Association of Nigeria (MEMAN) shows that the landing cost of imported Premium Motor Spirit (PMS), also known as petrol, has fallen to N1,117 per litre as of June 4, 2026.

The figure is now significantly lower than Dangote Refinery’s gantry price of N1,250 per litre, leaving a difference of N133 per litre.