Last year, many African countries experienced significant increases in fuel prices. Globally, oil prices surged. According to the World Bank, in the third quarter of 2023, the Energy Price Index saw a 9% rise, primarily driven by an 11% increase in oil prices, making up a significant portion of nearly 80% of the index. The average price of Brent crude oil in 2023 was $84 per barrel. The Brent price surged by 6% at the onset of the recent Middle Eastern conflict. Although a decrease from nearly $100 per barrel in 2022, this global rise in oil prices directly impacted fuel costs in Africa.
Across Africa, many countries rely heavily on imports for refined fuel products. This dependence on the global market makes them more vulnerable to price fluctuations. Africa’s total refining capacity is only around 4.4 million barrels per day, while its consumption is closer to 7.2 million barrels per day. The depreciation of local currencies in some African countries against the US dollar, in which oil is typically traded, further exacerbated the impact of rising global oil prices. For example, in 2023, Ghana’s Cedi depreciated over 20% against the US dollar. This meant that even at a slightly lower average price point compared to 2022, oil imports became significantly more expensive for Ghana in local currency terms.
Many African countries also enacted policy changes that further impacted fuel prices. For example, in May 2023, Nigeria, a major African oil producer, ended its long-standing fuel subsidy program. This policy change and rising global oil prices resulted in a significant spike in fuel costs for Nigerian consumers. This trend, particularly evident in the biggest African economies, pushed food and energy prices to the forefront of policy concerns. Here’s why.
Rising fuel costs have a domino effect. First, transportation expenses skyrocket, impacting the movement of goods and services. Then, businesses are forced to absorb these higher costs into their operational costs. They then pass these burdens on to consumers, fueling inflation. This inflationary pressure becomes particularly acute in nations where gasoline serves a dual purpose—powering vehicles and electricity generation.
Ultimately, rising inflation creates a vicious cycle, further increasing production costs. Industries reliant on efficient logistics, like manufacturing and agriculture, face rising operational costs. This can translate to shrinking profit margins, potential job cuts, or increased consumer prices for their products and services.
As of 2024, many African countries are still grappling with high fuel prices. Here are the top 10 African countries with the highest fuel prices in 2024. This report reflects data available as of April 2024, according to GlobalPetrolPrices.com. Please note that Fuel price data is subject to change due to external and internal factors.
1. Central African Republic
The Central African Republic currently has the highest fuel prices in Africa at $1.78 per liter, ranking 26th globally. In January 2024, prices were slightly higher at $1.83 per liter, though the country’s global rank was slightly better at 23rd. This minimal decrease suggests a relatively stable fuel market in the Central African Republic.
2. Zimbabwe
Zimbabwe occupies the 40th position globally in terms of current fuel prices at $1.69 per liter. This marks a slight increase compared to January 2024, where the price was $1.55 per liter, and the country ranked 47th globally. The price increase and decline in ranking suggest potential economic instability or currency fluctuations in Zimbabwe.
3. Senegal
Tied with Zimbabwe for current fuel price is Senegal, also at $1.60 per liter. However, Senegal edges out Zimbabwe with a slightly better global ranking of 41st. In January 2024, Senegal’s fuel price was $1.65 per liter, ranking 35th globally. This small decrease in price and improvement in ranking indicates a potentially stabilizing fuel market in Senegal.
4. Morocco
Morocco currently holds 49th place globally in fuel prices at $1.522 per liter. This is a slight decrease compared to January 2024, where the price was $1.561 per liter, and the country ranked 46th globally. This suggests potential government intervention or market adjustments aimed at lowering fuel costs in Morocco.
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5. Seychelles
With a current price of $1.558 per liter, Seychelles ranks 50th globally. This marks a significant decrease compared to January 2024, when the price was $1.602 per liter, and the country held the 42nd position globally. This substantial price drop warrants further investigation into potential reasons, such as currency fluctuations or fuel source changes.
6. Sierra Leone
Sierra Leone currently shares the 51st global ranking for fuel prices, with a current price of $1.524 per liter. This remains unchanged compared to January 2024.
7. Burundi
Burundi follows closely behind Sierra Leone at 53rd place globally, with a current fuel price of $1.516 per liter. This is a slight decrease from January 2024, where the price was $1.522 per liter and the ranking was 51st. This minimal change indicates a potentially stable fuel market.
8. Malawi
Malawi occupies the 54th position globally with a current fuel price of $ 1.454 per liter. This price remains unchanged compared to January 2024, suggesting stability in the Malawian fuel market.
9. Ivory Coast
Ivory Coast currently holds the 63rd position globally for fuel prices at $1.418 per liter. This is a slight decrease from January 2024, where the price was $1.462 per liter and the ranking was 58th. This small change suggests potential efforts by the Ivorian government to manage fuel costs.
10. Zambia
Zambia’s current fuel price sits at $1.242. In January 2024, the price was $1.47 per liter, ranking the country 58th globally.
The Bottom Line
As many African nations continue to wrestle with soaring fuel prices, the ripple effects on economies and daily lives are profound. Last year’s rise in global oil prices, compounded by currency depreciation and policy changes, notably in countries like Nigeria, has exacerbated the financial burden on consumers. High transportation costs inflate prices for goods and services, spurring inflation that particularly impacts industries dependent on logistics, such as agriculture and manufacturing. This not only squeezes profit margins but also potentially leads to job cuts and higher consumer prices, creating a vicious cycle of economic strain.
Despite slight fluctuations, the persistently high fuel prices underscore a critical need for strategies that cushion vulnerable economies from global market swings and foster more sustainable energy practices. This list of the top 10 African countries with the highest fuel prices in 2024 shows the ongoing challenge. It highlights the urgency for innovative solutions that ensure economic stability and prosperity across the continent.
