Market Size of Africa Refined Petroleum Products Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa Refined Petroleum Products Market Analysis
The Africa refined petroleum products market is expected to grow at a CAGR of more than 3.5% in the forecast period of 2022-2027. African country's oil & gas sector is export-dependent. The oil & gas industry mainly relies on China, the United States, and countries in Europe as a significant portion of oil & gas is exported to these regions. During the Covid-19 pandemic, governments all across the globe imposed stringent restrictions, which affected the demand for oil & gas from the transportation and power generation industries. Factors like the rising demand for oil & gas for electricity and transportation in the African region are expected to drive the refined petroleum products market in Africa. However, the Covid-19 pandemic has adversely affected Africa's oil & gas industry. Many refinery projects were delayed or put on hold due to a lack of funding. Furthermore, the FDI in the oil & gas industry also dropped significantly during the last two years. These factors are expected to hinder the growth of the refined petroleum products market in the forecast period.
- The middle distillates segment is expected to dominate the market during the forecast period. Owing to higher demand for middle distillate from the application such as heating, power generation, and transportation.
- The Africa region witnessed a rise in demand for electricity and transportation fuel. This rise is due to the steady growth in urbanization and industrialization. This trend is expected to continue in the future. Furthermore, In Africa, the use of solid fuels such as wood, charcoal, or coal is high for cooking activities. For instance, in the sub-Saharan Africa region, 80% of the population cooks with solid fuels, which can be replayed by kerosene or liquid petroleum gas (LPG). Currently, in sub-Saharan Africa, kerosene consumption is 7% - 10%, and LPG is around 4%. This low utilization of refined petroleum products in the region could offer a significant opportunity in the market.
- Nigeria is expected to dominate the refined petroleum products market. The country is one of the region's leading oil & gas producing countries. It has also witnessed significant investment in the refinery sector, which is expected to drive the refined petroleum products market in the country.
