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Nigeria’s Gasoline Prices Soar as Shortages Worsen

OIL PRODUCTS

Gasoline shortages persisted in Nigeria’s main cities April 30, leading to a sharp increase in prices, according to Reuters.

  • Prices in some outlets in Lagos and Abuja exceeded 850 naira, while in some areas outside the major cities, prices are above 1000 naira. NNPC sells its imported products at an average of 617 naira.
  • Foreign currency shortages and a cap on prices have left NNPC as the sole importer.
  • Gasoline is used as a motor fuel and for power generation in Nigeria.
  • In the longer term, Nigeria is looking to become a net exporter of gasoline when the 650k b/d Dangote refinery hits full capacity. The refinery is currently readying two units for gasoline output.
  • Wood Mac expects Dangote’s gasoline-focused units to be online this summer, although other analysts do not think they will be up and running until year end.
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Gasoline shortages persisted in Nigeria’s main cities April 30, leading to a sharp increase in prices, according to Reuters.

  • Prices in some outlets in Lagos and Abuja exceeded 850 naira, while in some areas outside the major cities, prices are above 1000 naira. NNPC sells its imported products at an average of 617 naira.
  • Foreign currency shortages and a cap on prices have left NNPC as the sole importer.
  • Gasoline is used as a motor fuel and for power generation in Nigeria.
  • In the longer term, Nigeria is looking to become a net exporter of gasoline when the 650k b/d Dangote refinery hits full capacity. The refinery is currently readying two units for gasoline output.
  • Wood Mac expects Dangote’s gasoline-focused units to be online this summer, although other analysts do not think they will be up and running until year end.