The main Europe’s gasoline markets has reduce, causing squash on European refiners, after president Tinubu removed fuel subsidies. The Nigeria fuel subsidy regime was adjudged to have destroyed much of the country’s domestic demand and a regional market for smuggled fuel.
North America and Nigeria leading in West Africa have remain the two major
destinations for petrol exports from Europe, which produces more gasoline than it uses, meaning its refiners rely on exports to support profit margins.
Under the subsidy regime, more than a third of petrol product was smuggled out of Nigeria state oil firm NNPC’s depots every day to be sold illegally abroad.
The Subsidy removal end financial incentive and collapsed market for smuggled subsidised Nigerian fuel in Togo and neighbouring Benin and Cameroon, further reducing demand for shipments through Nigeria.
Nigeria, Africa’s largest crude oil producer, relies heavily on imports because of its inadequate domestic refining capacity. And the Dangote refinery which was designed to address the domestic supply shortfall, but full 650,000 barrel per day production is not obtainable till second quarter of 2025.
