Post #58508

🌍🚫⛽️Some African countries are weeks away from running out of gas The Persian Gulf was once a dependable, steady and conveniently located fuel supplier to meet Africa’s steadily rising demand. Most of the diesel that’s shipped out of the Strait of Hormuz usually headed to the continent. The US-Israel strikes on Iran have changed all that — effectively closing the crucial maritime chokepoint and leaving a gigantic fuel hole for developing nations to fill. Eastern and southern African nations rely on the Middle East for three quarters of supply. Kenya is particularly at risk, having renewed a contract with heavyweights Aramco, Adnoc, and Enoc — all from the Gulf — just last year. Adding to the grim outlook are the scores of refineries from Mombasa and Lusaka to Durban and Limbe that have shut over the past decade, serving as monuments to a lack of investment. Several projects have been pitched in recent years to build new capacity, but plants have remained closed. South Africa stands as the most severe example, with domestic refining being cut in half. Billionaire Aliko Dangote’s 650,000 barrel-a-day plant has ramped up fast after initial construction delays, yet it won’t be able to make up for supply that comes from the Gulf, especially after meeting commitments in its home market, Nigeria. Prices will soon be — or have already been — hiked, driving inflation and setting back hopes of lower interest rates. Costs are set to climb sharply when South Africa does its monthly adjustment in April — diesel is seen spiking to a record — and there’s not much the Treasury can do about it. Smaller countries also suffer from chronic foreign-exchange shortages that will hold up fuel deliveries, while strategic oil storage is a luxury few governments can afford or even want to spend money on. The war has triggered a scramble by African nations to find new sources of petroleum, putting strained budget and fragile economic recoveries at risk. Many are merely weeks away from pumps running dry, with bigger and more powerful economies ahead in the queue. 🔗https://archive.ph/75Txz