The petrol unit of Nigeria’s 650,000 barrel-per-day Dangote refinery may remain shut for two to three months due to repairs, industry tracker IIR Energy said Thursday, raising concerns of a tighter global fuel market.
The refinery’s 204,000 bpd Residue Fluidized Catalytic Cracking Unit (RFCCU) was taken offline around August 29 following catalyst leaks. While efforts are underway to restart operations by September 20, IIR Energy warned that major equipment replacements could extend the shutdown for months. Dangote has yet to comment on the situation, according to Reuters.
Fuel traders said the outage is likely to strengthen an already tight petrol market. US gasoline crack spreads have surged nearly 13% this week, reaching their highest level since August 19, while Northwest European margins rose 23% to $19.31 a barrel—the strongest since late June, LSEG data showed. Analysts say supply constraints are offsetting seasonal declines in demand.
Since starting crude processing in January 2024, the Dangote refinery has reshaped global trade flows, reducing EU and UK petrol exports to Nigeria from about 200,000 bpd last year to 120,000 bpd in the first half of 2025. The plant has also shipped two petrol cargoes to the US East Coast, marking a breakthrough in meeting American fuel standards.
Meanwhile, oil prices slipped on Thursday on a surprise build in US crude inventories and expectations of an OPEC+ output hike. Brent crude fell 65 cents, or 1%, to $66.95 a barrel, while US West Texas Intermediate dropped 49 cents, or 0.8%, to $63.48.
The US Energy Information Administration reported a 2.4 million-barrel rise in crude stockpiles for the week ended August 29 as refineries entered maintenance season. OPEC+ ministers, including Russia, are set to meet Sunday to consider further production increases beyond the 2.5 million bpd already agreed for April to September.
Analysts say another hike would signal the alliance’s priority is regaining market share rather than supporting prices.
