Kenya turns to Aliko Dangote refinery for fuel amid supply crisis
Kenya turns to Aliko Dangote refinery for fuel amid supply crisis
Kenya and South Africa are among African countries now turning to Nigerian billionaire Aliko Dangote for fuel supplies amid growing fears of a looming shortage driven by the escalating war in the Middle East.
Dangote, who owns the Dangote Petroleum Refinery and Petrochemicals, has become a critical supplier whom most countries are now seeking a deal with as global supply chains face disruption, according to Bloomberg.
Across the continent, countries are scrambling to secure fuel from the refinery as instability in key oil-producing regions begins to affect availability.
Reports now indicate that the refinery is currently experiencing a surge in demand from nations including Kenya and South Africa, all seeking to cushion themselves against potential energy crises. However, the facility is not able to fully bridge the supply gap, producing about 650,000 barrels per day, with nearly 75 per cent reserved for domestic consumption in Nigeria.
This leaves only a limited volume available for export, forcing other African countries to compete for the remaining supply, with several governments already reaching out to explore what quantities they can secure from the refinery.
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Dangote told The Economist that the challenge at the moment is not pricing, but availability, as demand continues to outstrip supply.
The scramble comes as concerns mount locally, with reports indicating that motorists in Kenya could soon struggle to access fuel due to emerging supply constraints.
Some suppliers have reportedly begun rationing petrol and diesel, while several distributors have temporarily run out of stock, raising fears that the situation could worsen if delayed shipments fail to arrive.
According to Petroleum Outlets Association of Kenya Chairperson Martin Chomba, the impact of the shortage is already being felt more severely in rural areas, where some fuel stations have been forced to shut down due to stockouts.
Kenya consumes roughly 100,000 barrels of fuel per day, all imported through Mombasa, with regulations requiring importers to maintain only 21 days of operational reserves.
The situation is further compounded by threats to close the Strait of Hormuz, a critical global oil transit route that carries about 21 per cent of the world’s supply. This includes shipments from Saudi Arabia and the United Arab Emirates, raising concerns for Kenya, which heavily relies on Gulf imports under government-to-government fuel agreements.
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