Latest news with #fuel
Russia Today
a day ago
- Business
- Russia Today
Crudely choked: Why must this nation struggle to refine its own oil?
The Dangote Petroleum Refinery in Nigeria, one of the largest oil refineries in the world, with a capacity of over 600,000 barrels per day (accounting for 0.5% of global refining capacity), is well-known beyond Africa thanks to global media reports. Initially, the media discussed this ambitious vision of Africa's richest man, Aliko Dangote, who aimed to tackle the fuel shortage in his home country by building a $20 billion oil refinery. Later, there were reports about construction delays and bureaucratic hurdles; after the refinery was finally launched in May 2023, stories emerged about conflicts between Dangote and the Nigerian government regarding oil and gasoline prices. The refinery's significance has been noted by the Economic Community of West African States (ECOWAS), which has referred to it as a 'beacon of hope' for the struggling regional market. Nigerian President Bola Tinubu, who visited the facility on June 6, called it 'a great phenomenon of our time.' However, the Dangote Refinery also serves as an example of the challenges that many African nations (many of which are not as wealthy as Nigeria) face on their path to economic prosperity, industrialization, and self-sufficiency. Fuel and petroleum products are essential commodities for any economy. They are critical for the operation of transportation infrastructure and energy systems, and play a vital role in industries and construction. Despite the fact that Africa exports at least 4.7 million barrels of oil per day, it still finds itself importing approximately 2.8 million barrels per day, incurring costs of around $100 billion each year. Paradoxically, Nigeria – one of the largest exporters and producers of oil, a member of OPEC and OPEC+ – until recently had been forced to import refined petroleum products (about 500,000 barrels per day). Nigeria's oil refining sector emerged in the 1970s-1980s and had a peak capacity of around 500,000 barrels per day; however, it suffered considerable decline in the 1990s and 2000s due to liberalization and market reforms. Equipment became outdated, and the government spent over a decade unsuccessfully searching for foreign investors to modernize the old refineries. International traders, exporters, trading cartels, and local business associates benefit from keeping countries reliant on imported petroleum products, and reap stable profits from trading margins. The bulk of profits in oil trading comes not just from differences in raw material costs, but also from ancillary operations like hedging, insurance, chartering, transportation, and transshipment. These logistical and financial services form the backbone of global trading business models. This means that the emergence of a domestic refining industry and the launch of oil refineries are detrimental to their interests. Both formal pressure (such as WTO regulations) and informal methods (involving corruption) have been employed to stifle projects aimed at enhancing Africa's domestic oil refining capabilities. Nigeria stands as one of Africa's most developed nations, boasting a population of over 200 million, a growing economy with a robust domestic capital market, and its own billionaires; this allows the country to take the first (even if still unstable) steps toward energy sovereignty. Local businesses, possessing a deeper understanding of African market dynamics, have the potential to drive growth in regional trade and industry. This context sheds light on the construction and launch of Africa's largest oil refinery, owned by Aliko Dangote, the wealthiest person in Africa, whose net worth is estimated at $23 billion. The project is indeed impressive: the Dangote Refinery accounts for about 0.5% of the world's oil refining capacity and over a quarter of all refining capacity in Africa. The project is valued at more than $20 billion and features a high-tech facility equipped with state-of-the-art equipment from around the globe. It produces a wide range of petroleum products, including gasoline, diesel, jet fuel, kerosene, liquefied petroleum gas (LPG), propane, butane, bitumen, naphtha, and fuel oil. This refinery should reduce Nigeria's dependence on imported petroleum products, which cost the nation over $22 billion annually. However, despite being operational for two years, the refinery has faced numerous challenges, particularly pushback from various industry players. In a rather absurd twist, the refinery has been forced to import crude oil from the US instead of sourcing it from local producers. This situation has arisen because multinational corporations like Shell, Chevron, ExxonMobil, and Total, from which the Nigerian National Petroleum Company (NNPC) offtakes crude, prefer exporting crude, since prices are higher in international markets, allowing for greater profit margins. These companies invest in expensive deepwater fields offshore, and export directly to Europe and China. Meanwhile, smaller Nigerian companies operating on less lucrative onshore fields often struggle with technological and financial limitations; this worsens access to crude in the domestic market. Furthermore, for the past two decades, the market has remained rudimentary, with minimal demand for crude due to the lack of local refining capacity. Aliko Dangote's influence has so far enabled him to secure the necessary preferences that benefit the entire domestic market. In 2024, a 'naira-for-crude' deal was introduced, requiring oil producers to sell a portion of their crude oil on the domestic market in naira [the local Nigerian currency]. This measure aims to stabilize the national currency, reduce dollar demand, and foster the growth of the local oil refining sector. Such a model promotes value-added growth within the country, supports import substitution, and could lay the groundwork for an independent fuel sector free from external supply chains. However, this strategy doesn't benefit everyone. The mandatory sale of crude in naira decreases profitability for oil producers, especially multinational companies that rely on foreign currency payments. These tensions led to a temporary suspension of the program, but in April, it was reinstated. A recent visit by a delegation led by President Bola Tinubu to the refinery indicates that some of these conflicts have been resolved. The launch of a major project like the Dangote Refinery creates a cumulative effect that extends well beyond a single industry. It helps build a domestic market not just for petroleum products, but also for crude oil, fundamentally altering the structure of supply and demand within the country. In order to ensure the sustainable utilization of such capacities, the government is reevaluating its economic policies: it is granting meaningful incentives to local businesses, establishing supportive mechanisms like 'naira for crude,' and increasing pressure on foreign investors to redirect a portion of their production to the domestic market. All these efforts contribute to strengthening the naira by lowering demand for foreign currencies, stabilizing the balance of payments, and fostering the development of local production and financial systems, thus strengthening the country's economic sovereignty.
Yahoo
2 days ago
- Automotive
- Yahoo
New England region gas prices essentially unchanged from last week: See how much here
Regional gas prices are essentially unchanged last week and reached an average of $2.96 per gallon of regular fuel on Monday, approximately the same as last week's price, according to the U.S. Energy Information Administration. The average fuel price in the New England region declined about 4 cents since last month. According to the EIA, gas prices across the region in the last year have been as low as $2.92 on April 14, 2025, and as high as $3.50 on July 15, 2024. A year ago, the average gas price in the New England region was 14% higher at $3.46 per gallon. >> INTERACTIVE: See how your area's gas prices have changed over the years at . The average gas price in the United States last week was $3.14, making prices in the New England region about 5.8% lower than the nation's average. The average national gas price is higher than last week's average of $3.11 per gallon. The U.S. Energy Information Administration's tally of prices in the New England states includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. The USA TODAY Network is publishing localized versions of this story on its news sites across the country, generated with data from the U.S. Energy Information Administration. Please leave any feedback or corrections for this story here. This story was written by Ozge Terzioglu. Our News Automation and AI team would like to hear from you. Take this survey and share your thoughts with us. This article originally appeared on Burlington Free Press: New England region gas prices essentially unchanged from last week: See how much here
Yahoo
2 days ago
- Automotive
- Yahoo
Massachusetts gas prices essentially unchanged from last week: See how much here
State gas prices are essentially unchanged last week and reached an average of $2.94 per gallon of regular fuel on Monday, approximately the same as last week's price, according to the U.S. Energy Information Administration. The average fuel price in state slightly declined about 3 cents since last month. According to the EIA, gas prices across the state in the last year have been as low as $2.88 on April 14, 2025, and as high as $3.50 on July 8, 2024. A year ago, the average gas price in Massachusetts was 15% higher at $3.45 per gallon. >> INTERACTIVE: See how your area's gas prices have changed over the years at . The average gas price in the United States last week was $3.14, making prices in the state about 6.3% lower than the nation's average. The average national gas price is higher than last week's average of $3.11 per gallon. The USA TODAY Network is publishing localized versions of this story on its news sites across the country, generated with data from the U.S. Energy Information Administration. Please leave any feedback or corrections for this story here. This story was written by Ozge Terzioglu. Our News Automation and AI team would like to hear from you. Take this survey and share your thoughts with us. This article originally appeared on Gardner News: Massachusetts gas prices essentially unchanged from last week: See how much here
Daily Mail
3 days ago
- Automotive
- Daily Mail
Costco unveils all new type of store in huge leap for brand... and members will be delighted
Costco is about to do something it's never done before — open a gas station without the store. The membership-only retailer is planning to open its first standalone gas station in the spring of 2026 at the Mission Viejo Freeway Center. The site will take over a former location of the now bankrupt Bed Bath & Beyond location at the Mission Viejo Freeway Center. Unlike its usual gas setups outside warehouse stores, this station will operate solo — no convenience store, no big-box shopping required — just fuel. It will feature 40 gas pumps and cater exclusively to Costco members. Shoppers are already buzzing about the move. 'I think this is a great idea for members since they already have the logistics and it will hopefully make the store stations less crowded,' a Reddit user wrote. Others called the project an 'absolute win' and urged Costco to roll out more standalone stations — perhaps with car washes or mini-marts attached. The news comes after Costco announced it would expand its gas station hours. Weekday hours are 6am to 10pm, and are open from 6am to 8.30pm and 7.30pm on Saturdays and Sundays. While several social media users were thrilled about the news, others questioned Costco's decision. A few Reddit users insisted the station will be in a 'terrible location' while others didn't believe it was as important as Costco stores themselves. However, Neil Saunders of GlobalData revealed this concept could work in the retailer's favor as its cheap gas prices is a reason why the chain is 'wildly popular.' 'Costco is building a new stand-alone location in Orange County to help manage demand that can't be serviced at the station by its store,' Saunders told 'If successful, there are other locations where this could be implemented.' Costco competitors like Sam's Club and Walmart have added gas stations to select locations for its customers. Sam's Club's fuel stations are primarily for members, but some locations are also open to the public. Walmart operates over 400 fuel and convenience stores nationwide and is opening 40 to 45 stations this year. A few customers believed the gas station wouldn't make a difference and that it would be in a 'terrible' location Costco competitors are undergoing massive revamps such as self-checkout axing for AI technology to in-store makeovers. However, the warehouse store is also making changes of its own, some of which have infuriated its members. The company made headlines after confirming its decision to swap Pepsi for Coca-Cola. The first Coke machine was installed at one of its newest stores in California, and more will be added to food courts nationwide later this summer. Members were also disappointed by significant menu changes and claimed the chain hiked its food court prices. Some new features that left its exclusive membership holders smiling include earlier shopping hours and a $10 monthly delivery credit.
CBS News
4 days ago
- Automotive
- CBS News
Michigan gas prices drop 8 cents since last week, AAA says
Michigan gas prices dropped 8 cents from a week ago, according to AAA. A 15-gallon tank of gas costs motorists about $46, around $11 less than the highest price drivers paid in July 2024. Michiganders are paying an average of $3.09 per gallon for regular unleaded fuel, which is 14 cents less than this time last month and 49 cents less than this time a year ago. In Metro Detroit, motorists are paying about $3.16 per gallon, which is 1 cent less than last week but 40 cents less than last year. According to AAA, the most expensive gas prices in the state can be found in Ann Arbor ($3.18), Metro Detroit ($3.16) and Grand Rapids ($3.03), while the cheapest prices are in Traverse City ($2.98), Flint ($2.99) and Marquette ($2.99). "Drivers across Michigan are seeing lower prices at the pump this week," said Adrienne Woodland, AAA spokesperson. AAA offers the following tips to save on gas: • Combine errands to limit driving time. • Shop around for the best gas prices in your community. • Consider paying cash. Some retailers charge extra per gallon for customers who pay with a credit card. • Remove excess weight in your vehicle. • Drive conservatively. Aggressive acceleration and speeding reduce fuel economy. • Enroll in savings programs. AAA Members who enroll in Shell's Fuel Rewards program can save 5 cents per gallon when they fill up at Shell.
