Oil has breached $116 per barrel for the first time in years, and across Africa, the consequences are being felt at the pump, on the electricity grid, and in the pockets of ordinary people struggling to afford basic transport.
The price surge, driven by the escalating Middle East conflict involving Iran and concerns over shipping disruptions through the Strait of Hormuz — through which roughly 20% of the world’s oil flows — has sent shockwaves through African economies already grappling with debt, currency weakness, and climate pressures.
Nigeria, the continent’s largest oil producer, has not been spared. Despite its domestic production capacity, the country has been forced to increase fuel imports to compensate for output disruptions. In Lagos and Abuja, petrol prices have risen by up to 30% in the past six weeks. The government has resisted calls to remove subsidies entirely, aware that doing so would push prices beyond the reach of most citizens.
Kenya is rationing electricity, with power cuts implemented in several cities to conserve diesel used in backup generators. In Nairobi, private bus fares have increased for the third time this year, squeezing commuters who already spend a significant portion of their income on transport.
Uganda, Tanzania, and several other East African nations have seen similar patterns. South Africa has warned of higher petrol prices at the pump for the foreseeable future. The country’s automobile association has appealed to Treasury to delay the scheduled fuel levy increase.
The humanitarian toll is mounting. The International Rescue Committee warned this week that fuel price increases are disrupting the supply chains that deliver aid to some of Africa’s most vulnerable populations. Medical clinics in remote areas that depend on fuel-powered generators have been forced to ration operations.
The oil shock arrives at a difficult moment for the continent. Africa collectively spends an estimated $190 billion annually on fuel imports — money that could otherwise fund infrastructure, healthcare, or education. A sustained period of $100+ oil effectively transfers billions of dollars away from African development toward oil-producing nations.
African finance ministers, meeting virtually this week to discuss the crisis, called for a coordinated continental response. Whether such diplomatic efforts will succeed in a market driven by geopolitical conflict remains deeply uncertain.
For now, African consumers are left to absorb the pain — paying more at the pump, switching off appliances during power cuts, and walking longer distances when bus fares become unaffordable. The $116 oil era has arrived, and Africa’s response options remain painfully limited.