Niger Republic has turned to Nigeria for fuel supplies despite tension between the two countries in recent months.
The African country is facing severe petrol shortages pushing petrol prices to as high as $5.15 per litre.
Punch reports that Niger’s fuel shortage has reached critical levels and dealers are selling in Konni, a border town near Nigeria for around 1,200 CFA ($1.61) per litre.
While in Agadez, the price rises to 3,000 CFA (N7,500). In Arlit, near Algeria, it costs 3,500 CFA ($5.63).
A Nigerian businessman involved in transborder trade gave an insight into the fuel challenges.
He said: “There is a serious scarcity of fuel in Nigeria. Prices vary depending on how far you are from Nigeria.”
What led to the fuel crises
The fuel crisis stems from a confrontation between the Nigerien junta and Chinese oil companies. In March 2024, China National Petroleum Corporation (CNPC) reportedly provided Niger with a $400 million advance, using future crude oil deliveries as collateral.
The funds were meant to help the country cope with ECOWAS-imposed sanctions.
However, when the time came to repay, Niger struggled financially.
Rather than renegotiating, the junta imposed an $80 billion tax demand on Soraz, the Chinese-managed Zinder Refinery Company.
This was despite the Nigerien state-owned oil company, Sonidep, already owing Soraz $250 billion.
The dispute led to the refinery’s shutdown, cutting off Niger’s main petrol supply.
With no immediate alternative, the junta turned to Nigeria, despite months of strained diplomatic ties.
Fuel prices in Africa snapshot
According to data from the Global Petrol Prices platform, the average global fuel price is currently $1.26 per litre.
Nigeria’s fuel prices remained one of the cheapest in Africa thanks to the Dangote petroleum refinery.
Dangote reduces fuel price
Earlier, Legit.ng reported that the Dangote refinery has once again adjusted its petrol prices for marketers.
The latest changes is the third in just one month and have not sat well with oil marketers.
The giant refinery crashed petrol prices from $0.53 per litre to $0.52.
Source: www.legit.ng
