Nigeria’s Fuel: In a recent statement from S&P Global, concerns have been raised over potential cost increases for Nigeria’s petrol and diesel imports. This issue arises following the announcement by Netherlands and Belgium, key suppliers of Nigeria’s fuel, regarding plans to elevate specifications and quality standards for their exports. This move is part of environmental measures aimed at halting the export of low-quality motor fuel to not only Nigeria but also other West African countries.
Joel Hanley, heading a team at S&P Global, warns of the looming scenario, suggesting that Nigeria may have to seek alternative fuel sources or prepare for higher prices at the pumps due to the adjustment in fuel quality standards by European countries. The Amsterdam-Rotterdam-Antwerp (ARA) hub, housing major oil refineries such as Total Energies and Exxon Mobil, is crucial as the world’s leading petrol exporting region.
Precedent Incident Raises Alarms: February 2022 Petrol Withdrawal
The concerns are heightened by a previous incident in February 2022 when a significant shipment of petrol from Antwerp, Belgium, was withdrawn from Nigeria’s Fuel market due to excessive methanol levels causing damage to vehicle engines. This incident sets a precedent, indicating that further quality control measures may significantly impact Nigeria’s fuel import landscape.
