South Africa, Others Seek Fuel Deal with Dangote Refinery Amid Global Crisis

Several African countries, including South Africa, are exploring fuel supply agreements with the Dangote Petroleum Refinery as global energy disruptions intensify.

The move follows supply challenges linked to the ongoing Middle East crisis, which has disrupted traditional fuel supply chains and raised concerns about energy security across the continent.

Reports indicate that South Africa is seeking a 12-month fuel supply contract, while countries such as Ghana and Kenya have also approached the refinery for potential deals. 

The Dangote refinery, with a capacity of 650,000 barrels per day, has received multiple inquiries from governments looking for alternative sources of refined petroleum products. 

The crisis is expected to hit African countries particularly hard, especially in eastern and southern regions where about 75 per cent of refined fuel imports come from the Middle East. 

In response, South Africa has said it is engaging stakeholders to diversify its sources of crude oil and refined products to mitigate supply risks.

Officials noted that a comprehensive plan is already in place to manage potential disruptions and ensure energy stability.

The development highlights Africa’s heavy reliance on imported fuel and the growing importance of domestic refining capacity, particularly as global geopolitical tensions continue to affect supply chains.

Analysts say the Dangote refinery could play a critical role in reshaping fuel supply dynamics across Africa by reducing dependence on distant suppliers and providing a more stable regional source of refined products.