Demand for petroleum products from Dangote Petroleum Refinery and Petrochemicals has risen sharply as countries across Africa and beyond scramble for alternative fuel sources following supply disruptions linked to the Iran conflict.
According to a Bloomberg report released on Friday, March 20, several governments have approached the facility to secure refined products amid tightening global energy markets.
The surge follows the escalation of hostilities involving United States and Israel against Iran, which has significantly disrupted oil flows from the Middle East, a critical hub for global fuel supply.
Citing sources familiar with the matter, Bloomberg reported that South Africa is currently exploring a 12-month supply agreement with Nigeria in a bid to stabilise its energy needs.
The country said it is working with industry stakeholders to diversify crude and refined product sources while putting measures in place to manage supply risks.
Other African nations, including Ghana and Kenya, have also made inquiries, highlighting growing concern among economies heavily dependent on fuel imports from the Middle East and parts of Asia.
The Dangote refinery, with a capacity of 650,000 barrels per day, currently dedicates about 75 per cent of its output to domestic consumption, leaving a limited share for export despite rising international demand.
READ ALSO: Oil Price Surge: Dangote Refinery Has Become Nigeria’s Lifeline — PETROAN
Speaking to The Economist, billionaire industrialist Aliko Dangote said supply shortages, rather than pricing, have become the dominant concern in global energy markets.
“Right now it is not about pricing, it’s about availability,” Dangote said, adding that, “I think the situation will continue for a while.”
Analysts say the refinery’s growing strategic importance reflects a broader shift as countries seek to reduce reliance on volatile supply routes.
However, limited export capacity means competition for available products is likely to intensify, especially among African economies already grappling with rising fuel costs and fragile supply chains.
The conflict, which escalated after joint U.S–Israeli strikes on Iran on February 28, has severely disrupted oil and gas flows from the Middle East, a region that accounts for a significant share of global energy supply.
Fighting and retaliatory attacks have effectively paralysed shipments through the Strait of Hormuz, a critical route responsible for roughly 20 per cent of global oil and liquefied natural gas transport.
As a result, crude oil prices have surged sharply, crossing $100 per barrel, while global fuel markets experience what analysts describe as one of the largest supply shocks in history.
The ripple effects have been immediate and widespread. At least 85 countries have recorded rising petrol prices since the outbreak of hostilities, reflecting the tight supply and heightened uncertainty in energy markets.