The Dangote Petroleum Refinery has begun direct aviation fuel deliveries to international carriers, including Ethiopian Airlines, as global supply disruptions linked to tensions between the United States and Iran tighten fuel markets.
- Dangote Refinery has begun direct aviation fuel deliveries to Ethiopian Airlines amid tightening global energy markets and geopolitical tensions.
- The refinery says it is operating at full capacity, enabling exports of jet fuel, diesel, and petrol to multiple African and international markets.
- Strong margins in Europe and rising crude prices have boosted export demand, even as local airlines face higher operating costs.
- The facility continues to position Nigeria as a net exporter of refined products while supporting regional fuel stability.
Speaking at an energy conference in Lagos, managing director David Bird said the facility is now exporting jet fuel, diesel, and petrol beyond Nigeria after reaching sufficient output to meet domestic demand.
Since the onset of the Middle East crisis in late February, the refinery has supplied refined products to 11 African countries, reflecting a broader export strategy driven by surplus capacity.
Bird said the company remains focused on prioritising African markets, even as it expands its global footprint.
“We’re proud to have done a direct delivery to Ethiopian Airlines, and we will continue to export surplus production to neighbouring African countries,” he noted.
The refinery, widely regarded as the largest in Africa, is operating at full capacity following earlier maintenance, according to the company. This has enabled it to respond to rising demand for aviation fuel at a time when supply shortages are affecting both developed and emerging economies.
Global oil prices, which recently climbed to about $112 per barrel, have driven up aviation fuel costs. Bird argued that the primary challenge facing markets is not just price volatility but availability.
“What is worse than $100 or $120 oil is no oil at all,” he said, citing shortages in import-dependent countries such as Australia, Bangladesh, Sri Lanka, and the Philippines.
Export margins grow as local airlines feel pressure
Despite global pressures, Bird maintained that Nigeria’s domestic fuel supply remains stable due to increased refining capacity. He attributed this to investments led by Aliko Dangote, which have reduced the country’s reliance on imported refined products.
Industry data cited by Reuters indicates that the refinery is benefiting from strong profit margins on jet fuel production, particularly in export markets. European buyers, facing peak summer travel demand, have been willing to pay a premium, with imports from Nigeria reaching record levels of between 78,000 and 96,000 barrels per day in April.
While European refiners are estimated to earn around $15 per barrel, analysts suggest margins at the Dangote facility are more than double that figure, supported by access to locally sourced crude and the plant’s scale.
According to Devakumar Edwin, the refinery produces about 24 million litres of jet fuel daily. Although a significant share is exported to Europe, it also supplies Nigerian airlines, whose total demand is estimated at roughly 2.1 million litres per day.
However, rising fuel prices continue to strain the aviation sector. Domestic airlines have warned of potential disruptions as operating costs climb, underscoring the tension between export-driven profitability and local affordability.
The refinery sources much of its crude from the United States, other African producers, and Brazil, positioning it as a key player in global refined fuel markets.
Originally designed to transform Nigeria into a net exporter of petroleum products, the facility is increasingly shaping fuel supply dynamics across Africa and beyond, even as global energy markets remain volatile.
Story by: Segun Adeyemi
