South Africa, others seek fuel deal with Dangote refinery amid global crisis

Several African countries, including South Africa, have approached the Dangote Petroleum Refinery to secure fuel supplies following disruptions linked to the ongoing conflict involving Iran, Bloomberg reports on Friday.

Findings showed that the 650,000-barrels-per-day refinery owned by Nigerian billionaire Aliko Dangote has received multiple inquiries from governments seeking alternative fuel sources.

South Africa is reportedly seeking a 12-month supply contract, while countries such as Ghana and Kenya have also reached out to the refinery.

The development comes as the Middle East crisis continues to disrupt global fuel supply chains, raising concerns across several regions.

In Africa, the impact is expected to be more pronounced in eastern and southern regions, where about 75 per cent of refined fuel imports come from the Middle East, according to energy consultancy CITAC.

Bloomberg reports that South Africa, in a statement on Wednesday, said it was engaging stakeholders to secure crude oil and refined products from diverse sources as part of efforts to manage potential supply risks.

The government in the statement said it “is actively coordinating with industry stakeholders to secure both crude oil and refined petroleum products from a diversified range of sources.

“A comprehensive plan is in place to manage potential supply risks.”

President of the Dangote Group, Aliko Dangote, in an interview with Economist said availability, rather than pricing, had become the key concern in the current situation.

“I think the situation will continue for a while,” he said.

Despite the concerns, South African authorities said the country has sufficient fuel for the coming weeks, while Kenya also indicated there was no immediate threat of shortages.

Despite the concerns, South African authorities said the country has sufficient fuel for the coming weeks, while Kenya also indicated there was no immediate threat of shortages.

Industry data also show that Africa’s dependence on fuel imports has increased due to declining refining capacity in several countries, heightening vulnerability to external shocks.

The Dangote refinery is expected to play a key role in easing supply pressures, although about 75 per cent of its output is reserved for domestic use, with the remainder available for export.