Nigeria's fuel traders struggling to secure gasoline from refurbished state refineries, they say
Nigeria, which has suffered years of fuel shortages, has spent about $2.4 billion since 2021 to revive the long-mothballed state-owned Port Harcourt and Warri refineries in the Niger Delta to end reliance on imported refined products.
The initial phase of the refurbishment was declared complete in December 2024.
However, fuel trading group the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said its more than 6,700 members were still dependent on imports and the Dangote Refinery, Africa's biggest, which is yet to reach full production capacity.
According to data from the regulator, by March, the last month for which full data is available, there was no gasoline output at Port Harcourt, previously Nigeria's largest refinery.
In the same month the Dangote refinery produced 20.6 million litres of gasoline, with imports adding another 25.19 million litres to supply - equivalent to 92% of Nigeria's 50 million litre-per-day gasoline market.
The Port Harcourt plant continues to refine diesel.
NNPC, which operates the Port Harcourt and Warri refineries, did not respond to a request for comment on the reason for the lack of gasoline supply.
PETROAN said there should be transparency on the state of the refineries, adding in a statement that Nigerians "want to know the exact date of delivery of the revamp project".
Heads of Nigeria's four state-owned refineries were fired by the newly appointed NNPC CEO on April 30, about a month after his appointment.
Nigeria spent 15.4 trillion naira ($9.63 billion) on gasoline imports last year, more than doubling 7.51 trillion naira spent in 2023 according to data from the National Bureau of Statistics, a bill that authorities want to drastically reduce by processing the product locally.
($1 = 1,599.3400 naira)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
11 hours ago
- Reuters
China's Shandong raises fuel oil import tax rebates for some refineries, sources say
SINGAPORE, July 3 (Reuters) - The provincial government of Shandong, China's refining hub, has increased fuel oil import tax rebates for six independent refineries to improve their profitability as they struggle with low margins and fuel demand, industry sources said this week. The Shandong provincial tax bureau increased the consumption tax rebates that the independent refiners, also known as teapots, will receive for the sale of gasoline and diesel refined from imported fuel oil by 25 percentage points to between 75% and 95%, three sources with direct knowledge of the matter said this week. The change applies to Chambroad Petrochemicals, Hongrun Petrochemical, Lihuayi Group, Xinyue Group, Shandong Jincheng Petrochemical Group and Xintai Petrochemical, the sources said. The refiners were notified about two weeks ago, said one of the sources. The Shandong Provincial Tax Service, the national State Taxation Administration and the companies did not respond to Reuters' requests for comment. The teapots often choose to process straight-run fuel oil or tar-like heavy residue called bitumen blend into transportation fuels when crude prices become too expensive and they are under crude oil import quotas that can limit their purchases. China enacted higher import tariffs on fuel oil at the start of 2025 and at the end of last year reduced the tax rebates on fuel oil shipments. That led to fuel oil imports declining to their lowest ever for the January-May period, according to customs data. FGE's Associate Director of the East of Suez Oil Service Mia Geng said in a June 27 note the independent refiners had been suffering from low margins and shutdowns as a result of the rules and the provincial government likely also wanted the refineries to run more to boost industrial output and economic activity. Geng expects the tax changes should increase high-sulphur fuel oil demand and raise the refineries' run rates. However, the changes are unlikely to spur fuel oil demand in the short-term since crude oil is currently cheaper, a trading source and one of the sources with direct knowledge of the change said. The refiners in Shandong are China's main buyers of cheap sanctioned oil from Russia and Iran.
Telegraph
a day ago
- Telegraph
Refinery behind 10pc of UK fuel risks shutdown within days
An oil refinery that supplies 10pc of British fuel is at risk of shutdown within days, raising the prospect of disruption to national supplies. The Lindsey Oil Refinery in Lincolnshire, previously part of the Prax Group, has been plunged into chaos following the collapse of its owner. It has been in the hands of the Insolvency Service since Monday, when administrators were called in. Ed Miliband, the Energy Secretary, has been racing to secure the future of the site, which supplies Heathrow Airport. However, The Telegraph understands that deliveries of crude have stopped and refined fuels are not leaving the site either. If the situation continues, the plant will be forced to shut down by the end of this week. The hold-up is because of a lack of agreement between the Insolvency Service and commodities giant Glencore, which owns the oil and therefore any refined products until it is paid, sources told The Telegraph. Standstill leads to stockpiling So far the refinery has been able to continue operations by drawing down oil stockpiled on site and then putting the refined products into storage tanks. But there is concern that the site's available tanks will be full by the end of the week without a breakthrough in the talks with Glencore – a situation that would force the plant to shut down. Lindsey produces around one tenth of Britain's fuel supplies, including jet fuel destined for Heathrow Airport and petrol and diesel sent to hundreds of petrol stations. On Wednesday, a source close to Glencore said the company was working urgently with the Insolvency Service to resolve the impasse. A spokesman for FTI Consulting, which is managing the plant on behalf of the Insolvency Service, declined to comment. The Government insisted the UK was 'well supplied with fuel'.
Reuters
a day ago
- Reuters
Vitol group submits bid surpassing $10 bln for Citgo's parent, sources say
HOUSTON, July 2 (Reuters) - A bid exceeding $10 billion has been submitted by a group led by commodities house Vitol in a court-organized auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, two sources with knowledge of the offer told Reuters on Wednesday. A court officer overseeing the auction is expected to recommend a winner on Wednesday unless he requests more time to evaluate bids submitted in the last minute. Vitol did not immediately reply to a request for comment.
