Petrol scarcity is exacerbated by vessels carrying 150 million litres of fuel being stranded in Escravos.
Seven daughter vessels, collectively carrying 150 million liters of petrol, are currently stranded on the high seas at the Escravos channel, a crucial oil terminal in the Niger Delta. This situation has been identified as the primary cause of the ongoing supply crises.
Due to the shortage of daughter vessels available to transfer petroleum products from mother vessels to Nigerian jetties and terminals, there are disruptions in the supply chain. Huub Stokman, managing director of NNPC Retail Limited and chairman of the Major Energy Marketers Association of Nigeria, highlighted the fragility of Nigeria’s supply chain and the complications caused by even minor issues like bad weather or low tide.
Another significant concern in the downstream sector is the imminent completion of Nigeria’s Dangote oil refinery, which is expected to significantly alter the dynamics of the gasoline trade in Africa. The refinery’s operation threatens to disrupt the $17 billion annual gasoline trade from Europe to Africa, leading to increased pressure on European refineries already facing competition.
With the Dangote refinery now in production, there are expectations of fundamental changes in the market dynamics, particularly in vessel operations and fuel supply patterns. Despite short-term efforts to address supply shortages, fundamental challenges remain, particularly concerning the entry of Dangote into the market and its impact on existing players and infrastructure.
