Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you a link to reset your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you a link to reset password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

Gasoline demand on downward spiral as African countries go into lockdown

Commodities | Electric Power | Emissions | Nuclear | Natural Gas | Oil | Crude Oil | Gasoline | Metals | Steel | Coronavirus

Market Movers Europe, Sep 28-Oct 2: Oil markets see the return of Libyan oil; new gas season starts in Europe

Oil

Platts Market Data – Oil

Oil | Petrochemicals

European Refining & Petrochemicals Summit, 13th Annual

Oil | Crude Oil | Refined Products

REFINERY MARGIN TRACKER: Global refinery margins slip on diesel stock overhangs

Gasoline demand on downward spiral as African countries go into lockdown

Highlights

West African imports start to fall as demand falters

European refiners face another headache as prices slide

Nigeria says it has enough gasoline for 60 days

London — Demand destruction for gasoline caused by the coronavirus pandemic is set to intensify as more countries in Africa become subject to curfews and lockdowns, trading sources said Tuesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

West Africa, in particular, is a key outlet for European supplies, and this region historically imports more gasoline when prices start to slide, using the opportunity to top up inventories.

But with parts of Nigeria, going into lockdown, demand for the road fuel is expected to dissipate.

"Vehicular movement has been severely restricted. There will only be demand for power generation via diesel and gasoline generators," a Nigeria-based trader said.

Africa had recently emerged as the last home for European gasoline.

This is another setback for Europe's refineries, which are key exporters of gasoline.

Record lows

European gasoline prices have plunged to record lows following the outbreak.

S&P Global Platts assessed Northwest European premium unleaded gasoline barges at a record low of $159.75/mt on March 23. Since then prices have recovered slightly, rising to $194.50/mt as on Monday. Prices were heard to be at similar levels as of Tuesday afternoon.

West Africa has had ample stocks following a pick-up in activity, offering some paper thin support for European gasoline exports. However, with dwindling storage space and demand, the interest has dried up.

"West Africa are not buying anymore, they had been importing a lot. They have run out of space. Demand is also slowly going down," a source said.

Nigerian imports

The leading consumer in West Africa of road fuels is Nigeria, typically using around 1 million- 1.25 million mt of gasoline a month.

Earlier this week, state-owned Nigerian National Petroleum Corp. said the country had adequate stocks of gasoline to last for over 60 days.

Nigeria, which produces a little over 2 million b/d of oil, imports almost all its domestically consumed gasoline due to the poor performance of the four state-owned refineries.

Two weeks ago, the Nigerian government slashed its domestic pump price of gasoline by 10% following a sharp drop in global crude prices in the past month.

Nigeria, Africa's top oil producer, had been under pressure to slash domestic pump prices following a sharp drop in global crude prices in the past month.

The pandemic is now starting to spread faster in Africa, with 3,544 confirmed cases recorded in 39 out of 54 countries on the continent, according to data from the World Health Organization.

Nigeria, Africa's biggest oil producer, has recorded 111 cases of coronavirus, with one death, according to government figures.