Nigeria's Dangote refinery fuels Europe while local airlines face soaring jet fuel costs

The closure of the Strait of Hormuz pushed Europe to import about 700,000 barrels per day of jet fuel, with Nigeria's Dangote refinery emerging as the leading source, surpassing the United States. Operating at full 650,000-bpd capacity, the plant now produces roughly 24 million liters each day, most of which is shipped abroad. Inside Nigeria, the fully deregulated downstream market forces the refinery to price fuel at international levels, leaving domestic airlines paying far more than before.

Consequently, local carriers have racked up over 60 billion Naira in bank debt, trimmed routes and lifted ticket prices, while passengers endure cancellations and delays. Experts point to costly storage, coastal shipping and multiple traders as the main drivers of high prices, not a lack of supply. Proposed remedies include reserving a quota for Nigerian airlines and buying directly from the refinery gate to cut out intermediaries, but such measures would require government action and infrastructure upgrades.