Oil
Algeria diesel imports climb despite self-sufficiency targets
Sonatrach data reveals a sharp rise in Algerian fuel imports during 2025 as domestic refining struggles to keep pace with demand.
Key points
- Sonatrach annual figures show diesel imports reached 1.078 million tons in 2025.
- Overall petroleum product imports jumped significantly compared to the previous year.
- President Abdelmadjid Tebboune pointed to the upcoming Hassi Messaoud refinery to resolve shortfalls.
What happened
Algeria brought in over one million tons of diesel from international markets during 2025, according to the latest annual disclosures from state energy company Sonatrach. The figures contrast with earlier official expectations that the North African nation would halt fuel purchases entirely. Total petroleum product imports climbed substantially over the course of the year, driven primarily by the rising need for diesel.
State officials previously maintained that gasoline purchases had ended, while offering limited clarity regarding diesel requirements. Addressing business leaders in Algiers, President Abdelmadjid Tebboune acknowledged a shortfall in domestic diesel supply. He indicated that self-sufficiency would be achieved once the delayed Hassi Messaoud facility begins operations.
Financial implications
Sonatrach categorized the unassisted acquisitions as a heavy financial strain for the company. With European market valuations spanning between $650 and $800 per ton through 2025, the total expenditure for these shipments is estimated between $700 million and $850 million.
Because the fuel is retailed domestically at a heavily subsidized rate of 31 dinars per litre, the state absorbs the remaining cost differential. Meanwhile, Sonatrach reported a 26 percent decline in net profits for 2025, reflecting the compounding pressures of lower export revenues and high import bills.
Why it matters
For energy investors and policymakers across Africa, the Algerian situation highlights the acute vulnerabilities faced by rentier economies where downstream infrastructure lags behind consumption. According to World Bank figures, fuel exports accounted for 93.1 percent of Algeria's merchandise exports in 2024, leaving public finances heavily exposed to fluctuations in global hydrocarbon markets and domestic supply imbalances. As domestic diesel consumption hovers near 11 million tons annually while refining capacity stagnates, even the planned 2027 start of the Hassi Messaoud refinery is projected to cover only about 40 percent of total national requirements. This dynamic underscores the critical importance for African producers to invest proactively in robust domestic refining and diversified energy assets rather than relying solely on crude extraction.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
93.1% of Algeria’s merchandise exports were fuels in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
