A recent report reveals that West African petrol imports dipped by 30% in the second quarter of the year, signaling dwindling demand.
Data sourced from Refinitiv Eikon indicates that average monthly imports plummeted by 56% during this period.
Specifically, June loadings from the Amsterdam-Rotterdam-Antwerp hub to West Africa tumbled from 895,000 tonnes last year to 629,000 tonnes, while July loadings also slumped to 627,000 tonnes from 1.5 million tonnes in 2022.
Refinitiv Lead Oil Analyst Raj Rajendran pointed out that “demand from West Africa is drying up,” which is notably evident in Nigeria where petrol demand has shrunk following the removal of subsidies on May 29.
Despite this decline, foreign refiners from Russia, the Middle East, and Europe are vying to ramp up their exports of refined petrol to Nigeria. Russian petrol imports to Nigeria soared by 84% over the past year, with substantial growth in 2023 compared to 2022.
European refiners are facing pressure as one of their primary markets for gasoline, Nigeria, has seen domestic demand plummet due to subsidy removal and smuggling challenges. The shift is likely to benefit newer Middle Eastern refineries.
Nigeria’s petrol demand reportedly fell by 28%, leading to an increase in onshore gasoline stocks. The country’s reliance on petrol imports persists due to limited domestic refining capacity.
As the West African petrol market transforms, European refiners adapt to changing dynamics and seek new opportunities amid shifting demand patterns.