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African Fuel Crisis Amid Middle East Conflict

Financial Times Companies •
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Several African economies face imminent fuel shortages as the Middle East conflict disrupts global energy supplies. Despite producing 8% of the world's crude oil, the continent imports nearly all refined fuel due to inadequate refining capacity. Countries like Kenya, sourcing all fuel from Gulf suppliers, already report pump shortages, while Ethiopia introduces subsidies and Zambia threatens fines for hoarding petrol. The vulnerability stems from limited storage, weak purchasing power, and suppliers prioritizing closer markets.

Eastern and southern African countries bear the brunt, with 70% of jet fuel and kerosene imports flowing through the Strait of Hormuz. South Africa's domestic refineries meet only 40% of demand, forcing reliance on Middle Eastern supplies. Oil prices exceeding $100 per barrel compound the crisis, though some producers like Nigeria benefit through its Dangote refinery. However, this partial solution faces constraints as the facility depends on imported crude.

The energy shortage reverberates into food security as fertilizer imports from Gulf countries dwindle in Sudan and Somalia. While African producers may eventually attract investment due to heightened global energy security concerns, immediate risks dominate. With no African country belonging to the International Energy Agency and limited strategic reserves, governments lack coordinated mechanisms to address the crisis. The unfolding situation creates a "dangerous cocktail" of potential social unrest across the continent.