Fuel prices soar across Africa as Iran war hits global oil supply

Fuel prices have surged across Africa as the ongoing conflict involving Iran drives global oil prices higher, raising fears of inflation across the continent.

Many African countries rely heavily on imported petroleum products, leaving them exposed to supply disruptions and rising costs.

In South Africa, the government on Tuesday reduced its fuel levy for one month following pressure from labour unions and business groups seeking relief from rising prices expected in April.

In Ghana, the National Petroleum Authority increased mandatory minimum price floors for the April 1–15 pricing window. Petrol prices rose by about 15 per cent to 13.30 cedis per litre, while diesel climbed roughly 19 per cent to 17.10 cedis.

President John Mahama said the government was considering measures to ease the burden on consumers, including reducing fuel margins and reviewing a recently introduced petroleum levy.

He also suggested a potential supply agreement with Dangote Petroleum Refinery in Nigeria to secure alternative refined fuel sources, noting that Ghana imports about 70 percent of its refined petroleum.

In Nigeria, fuel prices have also climbed sharply despite full production at the Dangote refinery. Wholesale prices rose by about 61 per cent in March, pushing pump prices to around N1,400 per litre in Lagos and Abuja — the highest levels ever recorded.

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Malawi also recorded steeper increases after its Energy Regulatory Authority raised petrol prices by 34 per cent to 6,672 kwacha per litre and diesel by 35 per cent to 6,687 kwacha. Authorities attributed the hikes to sharp increases in global fuel costs and a shift to fortnightly pricing averages.

In Tanzania, regulators set a new petrol price cap of 3,820 shillings per litre in Dar es Salaam, representing a 33 per cent increase from March. Diesel prices also rose by 33 per cent, although Tanzania’s Energy and Water Utility Regulatory Authority said supply remained adequate, Reuters reported.

Mauritania increased petrol prices by 15.3 per cent and diesel by 10 percent. Economic Affairs Minister Abdallah Ould Souleymane compared the situation to the 1973 oil crisis and announced plans to raise the minimum wage and provide cash transfers to support vulnerable households.

Similarly, Gambia raised petrol prices by 18.79 percent and diesel by 12.20 per cent, while Botswana and Mali have also announced significant fuel price increases.

The Star