Oil marketers have said that the bulk of jet fuel consumed locally is now being supplied by the Dangote Refinery. According to a report by Energy Intelligence, jet fuel marketers say fuel from the 650,000 barrels per day Dangote refinery make up the bulk of jet fuel utilised locally, less than six months after it began production.
“We’re already buying from Dangote [now] it’s slightly cheaper or at least the same price as imports,” Asharami Synergy’s managing director, Foluso Sobanjo, told Energy Intelligence in an interview this week. The downstream subsidiary of Sahara Group is now Nigeria’s leading airline fuel supplier with a market share of over 20%.
Sobango reckoned that the Dangote jet currently goes for a $2-$3 per metric ton discount to imports.
He pointed out that the 10,000-20,000 ton “coaster” volumes available regularly from the plant are also much more convenient.
“Prices have fallen as the plant has ramped up production — despite large volumes of Mideast and Asian jet fuel passing right by the Nigerian coast on the way to Europe. Sources say Dangote is now operating at more than 300,000 b/d and finally began selling gasoline last month.”
Industry Clarification
The clarification came after the Airline Operators of Nigeria approached Aviation Minister Festus Keyamo last week, demanding that they would henceforth, prefer to purchase Dangote’s jet fuel.
The meeting later sparked local press reports, alleging that Keyamo had mandated Dangote as the country’s sole domestic jet fuel supplier.
Sobanjo also corrected local reports that Dangote had started selling jet fuel locally in naira.
Domestic petrol and diesel sales switched to the local currency, after a government-brokered deal for Dangote to buy Nigerian crude in naira.
While the jet is still sold in US dollars per ton for the time being, that could soon change, he said.
“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,” Keyamo was also quoted as saying.
Shifting Trade Flows
Dangote has shipped 1.1 million tons (35,000 b/d) of jet overseas since it began exports in March, according to Kpler tanker tracking.
That includes almost 290,000 tons of jet sent to Europe and 315,000 tons to South America, with the rest mostly staying in West Africa.
Exports have tailed off slightly since September in line with higher domestic sales.
Energy Intelligence calculated that since April, an additional 94,000 tons of Dangote jets have been shipped to other ports in Nigeria, mainly Lagos. The refinery’s management had previously suggested around three-quarters of Dangote jet production would be sold by sea with the rest loaded onto road tankers heading inland.
Dangote jet now makes up at least two-thirds of Nigeria’s jet fuel supply and almost half of the fuel used across West Africa, according to Energy Intelligence calculations.
Nigeria’s jet fuel imports have collapsed from 13,000 b/d last year — when they made up all of the country’s supply — to just 5,000 b/d so far in 2024. Jet imports into West Africa from outside of the region have similarly dropped from 34,500 b/d in 2023 to just 17,900 b/d so far this year. Loading schedules show Dangote jet heading to Benin, Senegal, Togo, the Gambia and Gabon in the region. Dangote’s owner has previously said the plant will eventually produce enough jet fuel to supply all of Africa.
Supply Security
Local fuel marketers had warned that Dangote would not necessarily solve the problem of regular stock-outs at the capital’s Nnamdi Azikiwe International Airport in Abuja, which relies on road tankers for 100% of its supply. But “there have been no supply disruptions in Abuja this year,” says Sobanjo.
He attributed the stable supply chain to a lighter rainy season which has kept roads passable.