According to the US EIA, Africa will dramatically exceed Europe and North America in terms of oil consumption in the years to come.

Deal-making activity in the retail sector of the continent is being fueled by the explosive increase in gasoline consumption, which is luring trading firms and oil giants looking for development outside of their home markets.

According to the US Energy Information Administration, Africa will dramatically exceed Europe and North America in terms of oil consumption in the years to come. As said by Citac, the demand for petroleum products is anticipated to rise by more than 6% yearly in some regions of the continent by 2023.

As shown by BP's Statistical Review of Global Energy, this is a quicker rate than the decade leading up to 2021, when overall oil consumption increased 1.4% annually on the continent, surpassing that of the US and the Middle East but declining in Europe.

According to Citac, there are over 45,000 retail stations across Africa, which has a population of 1.3 billion people. The American Petroleum Institute estimates that there are more than 145,000 outlets in the US.

Concerns, such as political instability, come along with higher economic potential. Africa-focused retailer Puma Energy, owned by Trafigura Pte, encountered difficulties on the continent and lost money in 2021. An official spokeswoman stated that the company is now "focused on turning around the business and reinvigorating our core downstream operations, particularly in high potential areas."

The most recent transaction in the selling of petroleum in Africa saw Vitol Ltd. buying the majority of Petroliam Nasional Bhd's Engen Ltd. Vivo Energy Plc, a division of Vitol, will increase its station count by 50% to 3,900 as a result of the purchase. With more than 4,700 retail locations and an estimated 17% market share, only TotalEnergies SE is more prevalent on the continent.

Following Vitol's Chief Executive Officer Russell Hardy, the need for transportation would inevitably rise as Africa becomes a "growth continent." In comparison to "a country that's expected to be full of Tesla’s in 10 years' time," the area is therefore a more desirable target.

(Bloomberg.com)