Market Trends of West Africa Refined Petroleum Products Industry
This section covers the major market trends shaping the West Africa Refined Petroleum Products Market according to our research experts:
Automotive fuels Expected to Dominate the Market
- The automotive fuels are expected to grow at the fastest rate during the forecast period, due to the governments' new regulations to adopt upgraded and cleaner versions of petrol and diesel in the transportation sector.
- Nigeria's average price of PMS(petrol) was recorded around NGN 164.8 in September 2021. The number of units sold for motor vehicles from January to August 2021 was recorded as 7250. The datas show the steadily growing vehicles market in the country due to low petrol prices.
- In February 2020, the governments of many countries in the region attended the high level ministerial meeting organized by Economic Community of West African States Commission with the support of the United Nations Environment Programme (UNEP). The motive was to pass regulations to adopt cleaner and upgraded versions of automotive fuels (petrol and diesel) to curb pollution levels, which is at alarming rate in many parts of the region.
- In August 2020, Volksvagen started the operations of the newly established vehicle assembly facility in Ghana. The assembly of the first car marked the beginning of the company in the country. The manufacturing facility is the result of the government's concrete steps to stengthen the local automotive industry in Ghana. It will lead to supply additions in the vehicle industry of the country, and the growth of fuel demand too.
- Owing to such developments, the automotive fuels are expected to dominate the market in the coming years.
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Investments by Private Sector Expected to Drive the Market
- The West Africa refined petroleum products market is expected to get accelerated by investments by independent energy companies, due to many governments' bold steps. For example, Nigerian government has planned to have a minority shareholding for themselves even in the already existent state-owned refineries. They hinted at attracting investments by private companies.
- Nigeria's refining sector has witnessed degradation in the recent scenario due to the productivity issues. The four public-sector refineries can process 445,000 barrels of crude oil daily, but they were running at around 7.6% average utilization rate in 2019. These issues demanded new investments to cure the ailing refining sector. There are about 23 valid licences pending for new refineries, as of 2021.
- In July 2021, Niger Delta Exploration & Production Plc (NDEP), an independent integrated energy company, announced that they are about to inaugurate a new 11,000 b/d refinery in Nigeria. The company also got approval for the addition of Train3 of the already existent Ogbele refinery.
- Owing to such an interest from the private companies, the market is expected to grow at a fast pace in the near future.
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