Dangote Petroleum Refinery & Petrochemicals FZE will be making more money only if it takes advantage of limited global refining capacity as the United States (U.S.) and some Asian countries are considering a diesel export ban amid spiraling price of petroleum products.
According to Oilprice.Com, U.S. diesel prices have surged above $6.50 per gallon, as Europe fuel prices are soaring, and shortages are looming over struggling economies.
Perhaps more worrisome is that Europe has closed much of its refining capacity, making the region most susceptible to a crunch in the commodity.
Oilprice. Com further stated that if the U.S bans export of diesel, China and India may follow its example, plunging the rest of the world into hitherto unseen levels of fuel shortages.
The aforementioned shrinking refining capacity is a boon for the 700,000 barrel a day Dangote Refinery that has been meeting local and international demands.
Africa’s richest man and founder of Dangote Refinery is proactive and poised to meet the global refining gap as it targets 1.4 million barrels a day in output expansion from its current 700,000 a day by 2029, which will make it the largest fixed refining asset in the world.
At the height of the war in the Middle East which disrupted exports, Dangote Refinery emerged as a key supplier of fuel to Europe as margins increased and earnings spiked. This means the company can meet the growing global demand, which is good news for investors who are buying its shares in the ongoing initial public offering (IPO).
Global refining capacity has continued to expand, reaching 103.66mbpd in 2025, up from 100.29mbpd in 2021. OECD Americas remained the largest refining region with 21.65mbpd of capacity, followed by China at 17.35mbpd, Europe at 13.41mbpd and the Middle East at 10.88mbpd, according to a recent report by Meristem Securities.
The report also stated that the global refinery throughput (volume of crude processed by a refinery) also rose to 86.89mbpd in 2025, supported by higher refinery runs in the OECD Americas, China, India, the Middle East and Africa.
“Africa remains a relatively small refining market, although capacity increased from 3.37mbpd to 4.17mbpd over the same period, supported partly by the addition of the 700kbpd Dangote Refinery,” said analysts at Meristem Securities.
Dangote Refinery Financial Performance for H1-2026
Revenue increased from ₦8.63 trillion ($5.56 billion) for the six months ended 30 June 2025 (“H1 2025”) to N19.13 trillion ($13.90 billion) for the six months ended 30 June 2026 (“H1 2026”), primarily due to the Refinery’s transition to stable, full-capacity production across all processing units from March 2026, together with performance testing rates of up to 700,000 bpd achieved in June 2026, resulting in significantly higher throughput and sales volumes as compared to the corresponding period in 2025.
The increase in revenue from H1 2025 to H1 2026 reflects both higher sales volumes and higher average realised prices. PMS sales volumes increased from approximately 3,094,000 MT in H1 2025 to approximately 6,061,300 MT in H1 2026, while the average price realised per tonne increased from approximately US$723 to approximately US$975.
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