African governments have imposed sharp increases in fuel prices as the war in Iran sends global oil prices soaring and threatens to trigger inflation across the continent, Reuters reported on Wednesday (1).
African countries import most of their petroleum products, making them highly vulnerable to supply disruptions.
South Africa, one of the continent’s largest economies, cut the fuel tax on Tuesday for one month to help curb further price hikes in April, following pressure from unions and business groups.
Considering new measures
In Ghana, the National Petroleum Authority raised the mandatory minimum prices for the period from April 1 to 15, increasing the price of gasoline by about 15% to $1.21 per liter and diesel by about 19% to $1.55.
The country’s President, John Mahama, stated that the government is considering measures to alleviate the impact on consumers, including reducing fuel margins and reviewing a tax recently imposed on petroleum products. Mahama also mentioned the possibility of a formal supply agreement with Aliko Dangote’s refinery in Nigeria to secure alternative sources of refined fuel.
Ghana imports about 70% of its refined fuel.
In Malawi, the energy regulatory authority (MERA) imposed even higher increases, raising the price of gasoline by 34% to $3.89 per liter and diesel by 35% to $3.89.
According to MERA, international prices rose 42% (gasoline) and 87% (diesel) between January and March, prompting suppliers to adopt biweekly price averages.
In Tanzania, the regulator set a new maximum price of $1.49 per liter for gasoline in Dar es Salaam, a 33% increase. Diesel also rose by 33%.
The regulator assured that supply remains sufficient to meet the country’s needs.
Vulnerable Families
On Tuesday, Mauritania raised the price of gasoline by 15.3% and diesel by 10%. Economy Minister Abdallah Ould Souleymane compared the situation to the 1973 oil crisis and said the government will compensate the most vulnerable families with an increase in the minimum wage and cash transfers.
The Gambia raised prices by 18.79% for gasoline and 12.20% for diesel, according to an official from the Ministry of Finance.
Authorities in Botswana and Mali also announced significant increases in fuel prices.
