Middle East Tensions Disrupt Fuel Supply to Nigeria, Africa Faces Shortage Risk

Escalating tensions in the Middle East are beginning to ripple across global energy markets, with Nigeria and several African nations facing potential fuel supply disruptions. Experts warn that tanker traffic through the Strait of Hormuz—a critical global oil transit route—has plunged sharply from about 60 vessels daily to just two or three, raising alarm over looming shortages.

Speaking at a webinar hosted by the Major Energies Association of Nigeria (MEMAN), Stan Drochon, Africa Head of Fuels and Refining at S&P Global, said the slowdown could have far-reaching consequences across the continent. While Nigeria may be partially shielded due to its crude exports and the operational capacity of the Dangote Refinery, other African countries—especially landlocked importers—are far more vulnerable to supply shocks.

According to Drochon, prolonged disruption could lead to fuel rationing, rising black-market activity, and inflationary pressure in already fragile economies. He stressed that urgent action is required from both governments and industry players to prevent a broader socio-economic crisis, noting that time is quickly running out.

Also weighing in, former Chairman of the Society of Petroleum Engineers (SPE) Nigeria Council, Joe Nwakwe, highlighted the resilience of Nigeria’s oil sector despite recent reforms. He noted that following the removal of fuel subsidies in 2023, the market experienced initial volatility but stabilised faster than expected, demonstrating underlying strength supported by infrastructure improvements and compressed natural gas (CNG) initiatives.

However, Nwakwe cautioned that persistent challenges—including regulatory uncertainty, policy gaps, and logistical constraints—continue to hinder progress. Analysts at the webinar also warned of a possible return of fuel subsidies if the crisis deepens, urging immediate measures such as strategic fuel stock deployment and increased local refining,

source: The sun