The Dangote Refinery has become the main supplier of jet fuel in Nigeria, just six months after starting operations.
According to a report by Energy Intelligence, most of the jet fuel used in Nigeria now comes from the 650,000 barrels-per-day refinery.
Managing Director of Asharami Synergy, Foluso Sobanjo, said, “We’re already buying from Dangote. It’s slightly cheaper or at least the same price as imports.” Asharami Synergy is Nigeria’s leading airline fuel supplier, holding over 20% of the market share.
The report states that Dangote’s jet fuel is sold at a $2-$3 discount per metric ton compared to imported fuel, making it more attractive to local buyers. Sobanjo also noted the convenience of regular deliveries from the refinery, with volumes of 10,000-20,000 tons available frequently.
Fuel prices have dropped as Dangote has increased production. It is reported that the refinery is now operating at over 300,000 barrels per day, and it started selling gasoline locally last month.
This news comes after the Airline Operators of Nigeria approached Aviation Minister Festus Keyamo, expressing their preference to buy jet fuel from Dangote. Keyamo was quoted saying, “By eliminating the influence of international market fluctuations, we can stabilise the price of jet fuel, which will now be clearer and cheaper as payments will be made in naira.”
Currently, jet fuel is sold in US dollars, but Sobanjo hinted that this may change soon, with future sales possibly being conducted in naira.
Since starting exports in March, Dangote has shipped 1.1 million tons of jet fuel overseas, with large amounts going to Europe and South America. However, exports have slowed down recently as more fuel is being sold domestically. Energy Intelligence estimates that Dangote now supplies two-thirds of Nigeria’s jet fuel and almost half of West Africa’s.
Sobanjo also mentioned that despite concerns about supply issues in Abuja, there have been no disruptions this year. He credited the stable supply to a lighter rainy season, which has kept roads clear for transportation.
This shift in the market has led to a sharp drop in Nigeria’s jet fuel imports, which have fallen from 13,000 barrels per day in 2023 to just 5,000 barrels per day in 2024.
