Cape Town – African countries are scrambling to secure fuel supplies after the Iran war disrupted global flows, driving a surge in demand for fuel from Nigerian billionaire Aliko Dangote’s refinery, a report says.
According to Daily Investor, South Africa is among the countries seeking supply deals, reportedly pursuing a 12-month contract, as governments across the continent look to diversify sources amid heavy reliance on Middle Eastern imports.
Dangote warned the crisis is now about availability rather than price, with disruptions expected to persist.
“Right now it is not about pricing, it’s about availability,” the report quoted Dangote as saying during an interview with the Economist.
“I think the situation will continue for a while.”
While South Africa says it has enough fuel for the coming weeks, it has limited refined fuel reserves, exposing vulnerabilities.
Other countries, including Kenya, Ghana and Ethiopia, are also feeling the strain, with measures such as fuel prioritisation and rising prices already emerging.
Meanwhile, new data from the Central Energy Fund shows South Africa is heading for record-breaking fuel price hikes, with petrol increases of up to R5.20 per litre and diesel surging by more than R8.50 per litre — the biggest jumps ever recorded, BusinessTech reported.
The spike is driven by oil prices climbing above $100 a barrel and a weakening rand, with additional tax hikes set to worsen the impact and little government relief expected.
The crisis indiates Africa’s dependence on imported fuel and declining refining capacity, raising concerns over economic pressure, inflation and supply stability across the continent.
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Compiled by Betha Madhomu
