Africa Oil Refining Market Size (2024 - 2029)

The African oil refining market is poised for growth, driven by increased investments in developing nations like Nigeria, Algeria, Tunisia, and Angola, despite challenges such as rising fuel prices. The market has rebounded to pre-pandemic levels, and the high demand for LPG presents significant opportunities, particularly in regions where populations rely on pollutive fuels. Egypt is anticipated to lead the market due to strategic governmental initiatives aimed at refining sector development.

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Market Size of Africa Oil Refining Industry

Africa Oil Refining Market- Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 2.50 %
Market Concentration Low

Major Players

Africa Oil Refining Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Oil Refining Market Analysis

The African oil refining market is expected to register a CAGR of around 2.5% during the forecast period. The market was negatively impacted by COVID-19 in 2020. Presently, the market has reached pre-pandemic levels.

Over the short term, the African oil refining market is expected to grow due to the increasing investments in developing countries, such as Nigeria, Algeria, Tunisia, and Angola. On the other hand, the rising fuel prices in the region can hinder the growth of the market studied in the coming years.

Nevertheless, the high LPG demand in many African countries creates ample opportunities for the market. In many parts of West Africa, a huge population uses pollutive fuels, such as biomass, firewood, charcoal, etc., for cooking and lighting. In Ghana, more than 60% of total energy consumption comes from biomass and dirty sources, as many people are deprived of clean fuels, such as LPG. Egypt is expected to dominate the market due to the government's efforts to develop the refining sector of the country.

Africa Oil Refining Industry Segmentation

The oil refining market includes the manufacturing and selling of petroleum products, such as gasoline, diesel, naphtha, LPG, petrochemical products, etc. 

The African oil refining market is segmented by geography. The report covers the market size and forecasts for the oil refining market across the major countries, including Nigeria, Algeria, Egypt, South Africa, and Rest of Africa. The market sizing and forecasts for the segment are provided based on refining capacity (in a million barrels per day).

Geography
Nigeria
Algeria
Egypt
South Africa
Rest of Africa
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Africa Oil Refining Market Size Summary

The African oil refining market is poised for growth, driven by increasing investments in countries like Nigeria, Algeria, Tunisia, and Angola. Despite the challenges posed by rising fuel prices, the demand for LPG presents significant opportunities, particularly in regions where traditional fuels like biomass and charcoal are still prevalent. Egypt stands out as a dominant player in the market, with a robust refining sector supported by government initiatives and private investments. The country's efforts to expand its refining capacity through various projects, such as the upgradation of the Assuit Refinery and the construction of a gas oil complex, are expected to enhance its position in the African oil refining landscape.

The market is characterized by a fragmented structure with key players including the Egyptian Refining Company, Nigerian National Petroleum Corporation, and others. Nigeria's refining sector, despite past challenges due to poor infrastructure and low utilization rates, is witnessing renewed interest from private companies, which is anticipated to drive growth. Notable projects, such as the Dangote refinery in Lagos, are set to significantly boost the country's refining capacity. These developments, alongside ongoing projects in other African nations, underscore the region's potential for expansion in the oil refining industry over the forecast period.

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Africa Oil Refining Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in million barrels per day, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Geography

      1. 2.1.1 Nigeria

      2. 2.1.2 Algeria

      3. 2.1.3 Egypt

      4. 2.1.4 South Africa

      5. 2.1.5 Rest of Africa

Africa Oil Refining Market Size FAQs

The Africa Oil Refining Market is projected to register a CAGR of greater than 2.5% during the forecast period (2024-2029)

Egyptian Refining Company (ERC), Nigerian National Petroleum Corporation (NNPC), KBR Inc., Midoil Refining & Petrochemicals Company Ltd. and Engen Petroleum Ltd. are the major companies operating in the Africa Oil Refining Market.

Africa Oil Refining Report Snapshots

Africa Oil Refining Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)