Hormuz Crisis Exposes Fragile Fuel Supply Chains in West Africa
The Strait of Hormuz remains the most critical waterway in global oil trade, and its disruption can have far-reaching consequences. In 2026, a conflict between the US and Israel with Iran led to the restriction of shipping through the strait, resulting in the largest supply disruption in history. The International Energy Agency reported that this crisis disrupted 39% of global trade and 31% of global shipments, causing a 10.1 million barrel per day collapse in global oil supply.
The impact was felt across West Africa, particularly in Nigeria, which is Africa's largest oil producer but still imports most of its refined fuel. Despite producing 1.4 to 1.6 million barrels of crude daily, the country saw petrol prices surge from ₦870 ($0.65) to ₦1,300 ($0.97) per liter in March 2026 alone.
Ghana fared somewhat better due to a favorable offset, but still struggled with high fuel costs. The country's inflation rate jumped 3.1% in a single month in March 2026, and transport fares and water prices also climbed. This highlights the structural problem of West Africa relying heavily on imported refined fuel.
The crisis exposed the fragility of regions that produce oil but cannot refine enough of it. Until these nations close their refining gap, they will remain vulnerable to global price fluctuations and supply disruptions.