Fuel prices in Africa have become a pressing concern, significantly impacting economies and citizens across the continent. The surge in fuel costs presents considerable challenges for both economies and citizens…..CONTINUE READING...CONTINUE READING
High fuel costs strain household budgets, disrupt transportation, and pose risks to businesses. In this article, we look at a few African countries grappling with soaring fuel prices and explore the reasons behind these price hikes.
As these nations navigate the complex energy landscape, effective energy policies become imperative for a more stable and prosperous future for Africa.
1. Kenya
Kenyans are feeling the pinch of a recent fuel price surge triggered by a 16% increase in Value Added Tax (VAT). This VAT hike has resulted in higher pump prices, burdening consumers.
In Nairobi, the cost of super petrol now stands at Sh195.53 per litre, while diesel prices have reached Sh179.67 per litre. These exorbitant costs affect transportation and business operations, creating economic challenges.
With fuel prices soaring, ordinary Kenyan citizens are voicing concerns over the heavy financial burden. High fuel expenses strain household budgets, leading to cutbacks on essential expenses.
2. Nigeria
Nigeria faces consecutive months of fuel price increases following the government’s decision to eliminate a costly fuel subsidy. The removal of the subsidy leaves consumers vulnerable to global oil price fluctuations.
Gasoline has reached an all-time high of 617 Naira ($0.7802) per litre, causing financial strain for many Nigerians. High transportation costs and fuel expenses affect businesses and ordinary citizens.
The elimination of the fuel subsidy poses economic challenges for Nigeria. Households struggle with rising costs, leading to reduced spending on essentials. Businesses face higher operational costs, impacting profitability.
3. Angola
Angola recently implemented an 88% increase in gasoline prices in its efforts to reduce fuel subsidies. On June 2, 2023, a litre of gasoline soared from 160 Kwanza to 300 Kwanza, signifying a substantial shift in energy policy.
The government aims to soften the impact on priority sectors and vulnerable classes during this period of change. However, how effectively these mitigating efforts will alleviate the burden on households and businesses remains to be seen.
4. Ghana
Unlike its neighbours, Ghana made a bold move years ago by removing fuel subsidies, resulting in market-driven fuel prices. Today, Ghanaians pay $1.130 per litre for fuel, navigating a different energy landscape due to the absence of subsidies.
The impact of this market-driven pricing is evident in the daily lives of Ghanaians, affecting everything from transportation costs to the affordability of basic goods. Families carefully plan their errands and transportation expenses, while businesses strategise to mitigate the higher costs in their supply chains and delivery networks…..CONTINUE READING
