Lagos: Nigeria has emerged as an alternative supplier of aviation fuel to Europe as disruptions linked to the US-Iran conflict tighten supplies from the Middle East, with a cargo from the Dangote Petroleum Refinery arriving in the United Kingdom.
According to Ghana Web, an impeccable source at the Dangote refinery confirmed the development, stating that many European countries are now sourcing aviation fuel from the facility in Lekki, Lagos, especially after the tightness caused by the US-Iran war. The source, who spoke in confidence due to the lack of authorisation to discuss the matter, noted that jet fuel prices are rising sharply as a result of the tension in the Middle East.
The development comes after reports from the Financial Times indicated that the last known shipment of jet fuel from the Middle East to the UK is expected this week, raising concerns of shortages as the Strait of Hormuz remains blocked. Industry data highlighted that a jet fuel cargo from Nigeria arrived at Milford Haven in the UK, marking a reshuffling of global supply chains as European buyers seek alternative sources.
Matt Stanley, head of market engagement for the EMEA and APAC regions at Kpler, commented on the situation, stating, "The system doesn't stop - it reshuffles. It's really a story of rerouting and price adjusting, rather than an outright shortage." The UK has heavily relied on Middle Eastern supplies, sourcing a significant portion of its jet fuel from the region after moving away from Russian imports and amid declining domestic refining capacity.
Lars van Wageningen, research and consultancy manager at Insights Global, mentioned that European buyers would increasingly look to refineries in West Africa to fill the gap. With about 40 per cent of Europe's jet fuel passing through the nearly shut Strait of Hormuz, supply has tightened, pushing benchmark north-west European prices to $1,744 per tonne, nearly double pre-war levels, according to Argus Media.
Consultants have warned that airlines could begin to feel the impact by the end of April if supply constraints persist. Janiv Shah, Vice-President of oil markets at Rystad Energy, reportedly said, "Market understanding is that fuel shortages are not far away in some countries," and that "higher prices are to trickle through the entire supply chain and will be felt by all."
FT reports that the tightening market has also drawn political attention. Former US President Donald Trump suggested that countries struggling to secure fuel should "buy from the US," emphasizing that the US has ample supply. Despite the uncertainty, the UK government assured that shipments continue to arrive from multiple sources, including India, the United States, and the Netherlands, alongside smaller volumes from other countries.
The arrival of Nigerian cargo underscores the growing role of West African refiners, particularly the Dangote refinery, in supplying aviation fuel to Europe as traditional Middle Eastern flows remain disrupted. Alhaji Aliko Dangote, President of the Dangote Group, told Al Jazeera that the facility is nearly running out of aviation fuel and diesel but has an excess of petrol. "The demand is so high, I can tell you for nothing. Today, we have almost sold out our jet fuel. We have almost sold out our gas oil. What we have is just the gasoline (petrol), which is the PMS; we call it Premium Motor Spirit. That's the only one that we have in excess," he said.