It is a massive dislocation and disintermediation by Dangote Refinery on Europe’s refineries: “Reuters reports that analysts are predicting that the commencement of operations at the Dangote refinery could signal the demise of the decades-old gasoline trade from Europe to Africa, valued at a staggering $17 billion annually.”
In other words, when Dangote Refinery begins to operate at full capacity, meeting local West African needs, some refineries in Europe which have served West Africa may have to become museums if they do not find new customers.
I wish Dangote Refinery the best of luck in this gasoline business. With what China is doing with EV, the market will change within a decade; China’s consumption of petrol is down year-on-year by 4.5%, and if not for import restrictions which Europe and US have put on their EV cars, they would have crashed the sales of petrol-powered cars in those markets.
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It is a massive dislocation and disintermediation: “Reuters reports that analysts are predicting that the commencement of operations at the Dangote refinery could signal the demise of the decades-old gasoline trade from Europe to Africa, valued at a staggering $17 billion… pic.twitter.com/AIz5XVe5hH
— Ndubuisi Ekekwe (@ndekekwe) March 28, 2024
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