The Dangote Refinery in Nigeria is on the verge of monopolizing the country's petrol market, according to a recent report by S&P Global. The refinery, launched just over a year ago, has dramatically shifted the dynamics of Nigeria's petrol supply, with 60% of the country's domestic petrol now coming from the facility.

This significant development marks a major turnaround for Nigeria, which previously relied entirely on foreign markets for its premium motor spirits (PMS) supply. The Dangote Refinery's output has not only reduced the country's dependence on imports but also enabled it to meet a substantial portion of its daily petrol demand.

According to a Dangote Group official, the refinery is currently generating over 30 million liters of gasoline per day, with an impressive utilization rate of more than 85%. This supply, equivalent to around 200,000 barrels per day, is expected to meet the majority of Nigeria's 350,000 barrels per day gasoline demand, as predicted by S&P Global Commodity Insights analysts.

Contrary to this finding, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has stated that the country's three operational refineries, including the Dangote Refinery, contribute less than 50% of the nation's daily petrol consumption. However, sources suggest that the Dangote refinery is largely responsible for the decline in gasoline imports, with state-owned refineries contributing minimally to local gasoline balances.

Alhaji Aliko Dangote, CEO of the Dangote Group, has revealed that his oil refinery could reach full capacity within the next 30 days. This would further solidify the refinery's position as the dominant player in Nigeria's petrol market.

The development has significant implications for Nigeria's energy sector and economy. With the Dangote Refinery meeting a substantial portion of the country's petrol demand, it is likely to reduce the country's reliance on imports and improve energy security. However, concerns about the potential monopoly of the market may arise, and regulatory authorities will need to ensure that the refinery's dominance does not stifle competition.

The story highlights the remarkable progress made by the Dangote Refinery in a relatively short period, transforming Nigeria's petrol market and positioning the country for greater energy self-sufficiency. As the refinery continues to ramp up production, it will be interesting to observe its impact on the broader energy landscape in Nigeria and beyond.