Global energy prices continue to fluctuate, and fuel prices in several African countries follow suit. From May to June, some African countries have recorded a slight reduction in fuel costs, while others have seen a slight increase. These countries, which typically have the highest fuel prices in Africa, have experienced some economic relief or distress that has influenced energy costs.
Central African Republic : Country with the highest fuel prices in Africa
The average price of gasoline worldwide is 1.31 USD per liter. However, there are substantial differences in these prices between countries. Generally:
- Wealthier countries have higher prices
- Oil-producing countries have significantly lower prices
Price disparities between nations result from various taxes and subsidies applied to petroleum products. All countries have access to the same oil prices on international markets but then decide to impose different taxes. As a result, the pump price of gasoline varies.
Internationally, Hong Kong records the highest pump price in the world at 3.24 USD per liter. Conversely, Iran holds the global record for the lowest fuel cost at 0.029 USD per liter, followed by Libya at 0.031 USD per liter.
Necessity of regulating fuel costs
In recent months, fuel prices have been rising in several African countries. Fuel costs must be regulated as they have a significant economic impact on the motoring population. The price of energy is an important catalyst for businesses and their consumers. Therefore, the lower the cost, the better. On the other hand, the higher the price, the greater the damage.
Rapid increases in fuel prices directly cause transportation costs to rise, impacting the cost of goods and services. As companies pass on the increase in their operational costs to their customers, this rise could lead to inflation.
Impact of rising fuel costs on other sectors
The manufacturing, logistics, and agriculture industries are among the sectors most vulnerable to rising operating costs due to higher fuel prices. While some countries on the continent have seen fuel price increases since May, some have fortunately recorded a decrease. For example, countries like Seychelles, Morocco, and the Central African Republic have seen a reduction in energy prices over the month.
These nations are among those typically at the top regarding high fuel costs. Whether prices decrease or increase, these states continue to endure energy prices that can be considered too high for a developing economy.
