Fuel Overview

Société nigérienne des produits pétroliers (SONIDEP) is responsible for matching demand and supply for petroleum products in Niger. SONIDEP has depots in Agadez, Diffa, Dosso, Maradi, Niamey, Tahoua and Zinder from which they serve retailers. The total capacity is 52 000m³ and the company is supposed to maintain a security stock of 90 days consumption at all times. The prices for most petroleum products are fixed by the government decree. The current prices have been untouched since January 2013 and there is little risk of any change as there are limited funds to support a further decrease, and limited political capital to sustain an increase. All supply was imported through the ports in Benin and Togo up until 2011 when a refinery was put in operation in Niger which was able to meet the domestic demand. Certain products such as Jetfuel has always been imported. There is a fairly large market for contraband fuel brought in from Nigeria in particular (due to larger subsidies on fuel) and sold openly on the streets. The quality of this fuel is questionable.   

Société de raffinage de Zinder (SORAZ) is a consortium between China National Petrolem Company (CNPC) and the Nigerien state. The former holds 60% and latter 40%. The company manages the refinery that handles oil extracted in Niger. A subsidiary of CNPC called CNPC-Niger-Petroleum SA handles the exploration and extraction side. SONIDEP has a monopoly position for purchases, sales and storage of petroleum products – and is the sole customer of SORAZ. Though the CNPS has succeeded to break the monopoly for export through SORAZ which now has joined right with SONIDEP to export oil products in excess of interior needs. SONIDEP is owned entirely by the Nigerien state. The World Bank orchestrated an effort to privatise the company in 2007, but eventually settled for reforms that would increase accountability and transparency. The distribution at the pump is fully privatised and there are a number of companies operating in Niger including Total, Oriba, Oil Libya and Niger Oil. 

Historically all petroleum products were imported, by SONIDEP, through Benin and Togo. Perhaps surprising no official imports come through Nigeria, Africa’s second biggest oil producer. The reason for which is that Nigeria has heavily subsidised oil products combined with low refinery capacity, and as such is in need to import refined oil products themselves. In 2011 Niger started oil extraction in Agadem in Zinder, and a refinery was established. The latest public available data stems from 2014 were oil production were at 21 000 barrels per day and consumption at 7 000 barrels a day[1], although this was recently. Refinery capacity is about 20 000 barrels a day. As such Niger was able to cover its own demand and position themselves as an exporter. The ambitions were to expand production to 80 000 barrels a day and export 60 000 barrels. For exportation a MoU was signed with Chad, to build a pipeline to connect with the Chad oil pipeline, for this purpose. Instead oil prices fell dramatically and it turned out that SORAZ buys petrol from CNPC at a fixed price at 75 USD which massively increased the company’s debt (thought to be around USD 100 million) to the Chinese company who had also footed the entirety of the investment. Subsequently it was revealed that SONIDEP as SORAZ’ unique client had failed to pay for the petrol and amassed a debt at about USD 68 million. This led to a massive conflict between SONIDEP and SORAZ which culminated in shutdown of the refinery, ostensibly due to a malfunction. And a blockage of exports by truck by CNPC. Subsequently the CNPC succeeded in gaining the right to export refined products through SORAZ, which it in practice controls completely, and the refinery is running again. The supply of the Nigerien demand is however become more complicated. Late 2016 the oil ministry of Ghana[2] declared that they had started export petroleum products to Niger which means that SONIDEP is back to importation to meet domestic demand. Imports will also come through the ports of Cotonou and Lomé where SONIDEP has maintained its presence. Despite these issues SONIDEP has managed to keep the supply open and have so far avoided any major ruptures.

For more information on government and fuel provider contact details, please see the following links:

4.1 Government Contact List

4.7 Fuel Providers Contact List

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

Fuel Pricing

Fuel prices are set by government decree since 2012. It is a very sensitive issue politically. Decrease of prices will provide a political windfall while increases will lead to mass demonstrations. The current prices have been in effect since January 2013 and there are no indications that the prices will be revised in the near future. Only national refined petroleum products are covered in this fashion, thus jet fuel prices will follow market prices.

The fuel prices have been calculated as follows: SONIDEP has a fixed price of XOF 336 per litre of gasoline from SORAZ. On top of this amount comes a tax (TIPP) of 12% and a value added tax of 19% adding XOF 104.16 to the price. Next comes SONIDEP’s cost covering and profit margin with seven charges totalling XOF 75.92 in combination with fixed and variable (%) charges. Finally there are the fees levied by the retailers that totals at XOF 51.07. When prices last changed, in January 2013, the government reduced the TIPP-tax by three per cent.

Seasonal Variations 

No seasonal variation, nor annual variation for that matter.

Fuel Transportation

Transport of fuel is done by fuel trucks. Most will come out of the SORAZ refinery in Zinder, though imports have restarted through Benin and Togo, and from Ghana.

SONIDEP has a fairly well developed depot structure that has been enhanced recently. They are required to hold 90 days security stock in the depots. In addition the retailer structure is functioning and spread throughout the country, these are also required to hold a security stock of 2 000 litres. For better or worse the black market for fuel is also thriving and would likely increase supply if prices went up as a result of a shortage. In sum current capacity should be able to meet local needs as well as any increase in demand from the humanitarian community.

Standards, Quality and Testing

There are two national testing laboratories that are both under SONIDEP. They can be found in Sorey and in Dosso. The quality of fuel that passes through SONIDEP is of an acceptable standard.

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