Dangote Refinery Shuts Down, Petrol Prices Rise as Supply Slows, Filling Stations Sell at New Rate
- The Dangote Refinery is undergoing repairs in its petrol production unit, which has led it to pause operations
- Feelers show that the technical fault will knock the petrol-producing unit out for two weeks
- Experts have said the move could cause a spike in the prices of petroleum products, especially petrol, which has already risen by 6%
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria’s 650,000-barrels-per-day Dangote Refinery has temporarily shut down its petrol-producing unit following a technical fault.
The shutdown, which began on August 29, is expected to last at least two weeks as engineers work to fix a catalyst leak in the 204,000 bpd Residue Fluidised Catalytic Cracking Unit (RFCCU).
Source: UGC
Industry tracker IIR Energy confirmed the development, while two other sources in the oil sector also verified the downtime but requested anonymity. The refinery has not yet issued an official statement on the matter.
Petrol prices surge across depots
The setback comes at a time when the facility is playing a central role in Nigeria’s domestic fuel supply, making the temporary halt especially significant for local prices.
Almost immediately after the shutdown, fuel depots across the country adjusted prices upward, reflecting tighter supply.
On September 1, Rainoil sold petrol at ₦824 per litre, Dangote and Integrated at ₦821, and Aiteo at ₦822 in Calabar.
Prices were even higher in Port Harcourt and Warri, where Evergreen and Ever charged ₦840, while Parker priced petrol at ₦838.
By September 4, prices had jumped sharply. Rainoil raised its pump price to ₦870 per litre, marking a 5.6% increase in just three days. In Port Harcourt, TSL matched ₦870, while Wosbab in Lagos sold at ₦850, and Prudent in Warri priced at ₦865.
Energy analysts told Petroleumprice.ng that the two-week disruption would further strain supply, with the refinery outage emerging as a direct factor in the fresh surge.
Exports remain on schedule
Despite the local disruption, Dangote’s export plans appear unaffected. Ship-tracking data from Kpler indicates that the refinery’s first petrol shipment to the United States remains on course, with delivery expected in New York later this month.
Since starting operations last year, the $20 billion refinery has quickly reshaped both Nigerian and international fuel markets.
It has boosted domestic supply and reduced imports while also sending refined products abroad.
However, it continues to face operational challenges, with May reports suggesting that the RFCCU would run at reduced capacity through October due to earlier setbacks.
Global market impact
According to a report by PetroleumPriceNG, the refinery’s downtime is not just a Nigerian problem—it is also influencing global fuel prices. With reduced supply from one of the world’s newest mega-refineries, U.S. refiners are enjoying stronger margins.
On Wednesday, the U.S. gasoline crack spread, the margin between gasoline and crude oil, rose nearly 3% to its highest level since August 19, following an 8% spike the previous day.
Analysts say the development highlights both the growing weight of Dangote’s operations on global energy markets and its vulnerability to disruptions.
What is ahead for consumers?
For Nigerian consumers, the shutdown means more pressure on petrol prices in the short term, especially with limited alternative refining capacity in the country.
Globally, the incident is another reminder of how interconnected fuel markets have become, with a refinery outage in Lagos sending ripples as far as New York.
Source: UGC
The coming weeks will reveal whether repairs restore operations as scheduled, or whether the refinery faces longer delays that could deepen the strain on both domestic and international fuel supplies.
Dangote Refinery imports Ghanaian crude
Legit.ng earlier reported that for the first time since operations began, Dangote Refinery has imported Ghana’s Sankofa crude, a medium-sweet grade, into its processing mix.
Data from global market intelligence firm Kpler shows that in August, the facility received five Nigerian Suezmaxes, two U.S. Very Large Crude Carriers, and one shipment from Ghana.
The inclusion of Ghanaian barrels highlights a deliberate shift toward supply diversification.
Source: Legit.ng
