Dangote Refinery, Africa’s largest refinery, has sharply reduced its crude oil purchases amid ongoing operational difficulties, tightening the supply of petrol on the continent.
The refinery is expected to purchase fewer than 300,000 barrels per day (bpd) of crude in October, according to Bloomberg, roughly half of the 600,000 bpd it bought in July.
Vessel-tracking data and crude allocation lists indicate the slowdown follows a series of internal setbacks that have disrupted production.
The petrol unit, a key supplier to both Nigeria and international markets since operations began last year, has struggled in recent months due to technical challenges, unplanned outages, a national strike, and suspected sabotage linked to internal restructuring efforts.
In late September, a three-day strike over layoffs of workers crippled refinery operations, resulting in production losses of approximately 600,000 barrels, according to the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited.
Earlier this year, the refinery had ramped up purchases of US West Texas Intermediate (WTI) crude, with American supplies even surpassing Nigerian crude volumes in July.
The 650,000-bpd facility, the largest single-train refinery in the world, had also begun exporting fuel beyond West Africa, signalling its growing regional influence.
However, the refinery’s crude intake has since dropped significantly. In October, Dangote is expected to take delivery of around 287,000 bpd, comprising 153,000 bpd of Nigerian crude and the remainder from the United States, Bloomberg reported.
Analysts warn that the refinery’s reduced petrol output could persist well into 2026, prolonging supply shortages and sustaining upward pressure on fuel prices across the region.
The ripple effects are already being felt in Europe, where petrol prices have strengthened due to the disruption in West African supply.
European petrol has been powerful as a result of Dangote’s issues,” said Neil Crosby, an analyst at Sparta Commodities, in an interview with Bloomberg.
The refinery, commissioned in 2023, is regarded as a cornerstone of Africa’s energy independence ambitions. Yet, its recent challenges highlight the fragility of supply chains and the delicate balance between local energy security and global fuel markets.
