Nigeria’s Dangote Refinery is facing the prospect of a prolonged shutdown of its petrol production unit, a development that could add further strain to an already tight fuel market. Industry analysts warn that technical challenges may delay a restart well beyond initial expectations.
The refinery’s gasoline unit, with a capacity tied to the country’s largest refining complex, was halted in late August after technical faults were detected.
Technical Issues Delay Restart Timeline
The petrol unit was shut down on August 29 following catalyst leakage problems and was initially expected to resume operations by September 20. However, energy sector analysts say the scale of the damage may require extensive repairs.
According to industry monitoring groups, the unit could remain offline for two to three months as critical components are repaired or replaced. Such delays would slow the refinery’s ability to operate at full capacity and limit petrol output during the period.
Impact on Global and Regional Fuel Markets
Since it began crude processing early last year, the Dangote Refinery has played a major role in reshaping gasoline trade patterns. Its output sharply reduced fuel imports into West Africa from Europe and the United Kingdom, altering traditional supply routes.
Recent market data also shows that petrol shipments from the refinery increased at a time when refineries in parts of the Middle East were partially or fully shut, amplifying Dangote’s influence on regional supply balances.
Market Tightness Likely to Intensify
Traders warn that a longer-than-expected shutdown could worsen supply pressures. With demand remaining strong and alternative sources limited, reduced output from Nigeria’s largest refinery may contribute to higher prices and increased competition for available cargoes.
Market participants say the situation will be closely watched in the coming weeks, as the refinery’s restart timeline could play a decisive role in determining fuel availability across Africa and beyond.
