Niger bans petrol, diesel exports to prioritise domestic fuel supply

The Republic of Niger has imposed a ban on exporting premium petrol and diesel, in an effort to prioritize local fuel supply amidst mounting worries over global petroleum market disruptions. This decision was announced by Niger’s Minister of Trade and Industry, Abdoulaye Seydou, through a ministerial order disclosed on the country's official Facebook page on Saturday, October 17.

Nigerian neighbors China, Thailand, and Kyrgyzstan have followed suit by introducing export restrictions or bans on refined petroleum products due to ongoing supply issues linked to the conflict involving Iran.

The new directive mandates that domestically produced petrol and diesel should primarily meet local consumption needs before any exports are considered. Exports of surplus petrol and diesel by SONIDEP and SORAZ are permissible, but require special authorization from the Minister responsible for Trade. The government has also granted authorities from the Ministry of Trade and Industry, customs authorities, and defense and security forces the power to identify violations and enforce penalties under current laws.

The ban has been enacted due to fuel supply disruptions affecting filling stations in Niamey, Niger's capital. As the Middle East conflict continues to impact global energy markets, numerous governments have introduced export restrictions on refined petroleum products to safeguard domestic supplies and curb escalating fuel costs.

On Friday, October 16, Brent crude oil briefly surged to $110 per barrel for the first time since May, triggered by renewed fears over supply disruptions in the Middle East and attacks on Russian energy infrastructure. In contrast to Niger, Nigeria has increasingly relied on domestic refining capacity to lessen its dependence on imported petroleum products since the Dangote Petroleum Refinery began operations.

Nonetheless, the country continues to import petroleum products, with recent court decisions shedding light on an ongoing dispute concerning import licensing and the protection of domestic refining investments.