Fuel from Dangote Refinery reaches more African countries amid Middle East supply disruptions

As conflicts in the Middle East disrupt oil shipments, African countries are feeling the strain. Fuel shortages have hit Kenya’s independent retailers, Egypt has raised electricity prices, and Ethiopia has called for energy conservation. Amid these pressures, the Dangote Refinery has stepped in, shipping 17 cargoes of gasoline to multiple African nations to stabilize supply.

Operating at full capacity of 650,000 barrels per day, the refinery is also increasing urea exports. The facility produces roughly 3 million metric tons annually, most of which previously went to the United States and South America. With global supply disruptions limiting options, African buyers are now receiving more shipments regionally.

Dangote ensures supply across African regions

On Monday, during a tour of the plant outside Lagos, Aliko Dangote, Africa’s richest man with a net worth of $32.5 billion, highlighted the refinery’s role in the current energy crunch. “What I can do is assure Nigerians … and most of West Africa, Central Africa, and East Africa, we have the capacity to supply them,” he said. He added that shipments of urea have been redirected within the continent to meet urgent demand.

The refinery’s increased activity comes amid a spike in crude prices. Military actions involving the United States, Israel, and Iran have threatened key energy routes, with the Strait of Hormuz, through which roughly 20 percent of global oil flows, becoming a flashpoint. Retaliatory strikes have pushed crude oil prices briefly to $120 per barrel before easing near $110.

Africa faces rising energy costs, shortages

Across Africa, the impact is evident. Fuel prices in Nigeria have risen more than 75 percent this year. In Kenya and Somalia, shortages are acute, while South African farmers face rising diesel costs. Egypt has increased electricity tariffs for high-usage consumers. These developments underscore the continent’s dependence on Middle Eastern oil.

Dangote Refinery’s rising exports align with a $4 billion senior syndicated loan, mostly backed by the African Export-Import Bank, supporting the $20 billion complex. Expansion includes a 750,000-barrel-per-day facility next to the existing plant, potentially lifting capacity to 1.4 million barrels daily. The enlarged refinery could produce $55 billion in annual revenue, increase Nigeria’s fuel exports, and help ease foreign-exchange pressures.