Top 10 African Countries With Highest Fuel Prices In July 2024

Many African countries grapple with high cost of fuel which is caused by a combination of global and local factors.

At the heart of it is global oil price dynamics. The cost of crude oil on the international market significantly affects fuel prices worldwide. When global oil prices rise, so do the prices at the pump in African countries. Many African countries have limited refining capacity thereby relying heavily on importation of refined fuel to meet their local consumption demands. Here comes the issue of exchange rate. Fluctuations in a country’s local currency exchange rate against the US dollar (in which oil is typically traded) can affect fuel prices. A weaker local currency can make purchasing fuel more expensive.

Other factors affecting fuel prices in African countries include taxes and duties imposed on fuel imports by African governments as a source of revenue; transport/logistical costs, removal of subsidies, overbearing government regulations, and geopolitical tension that disrupts the fuel supply chain leading to scarcity, can also increase costs.

READ ALSO: Fuel Price Hikes As Lame Duck Economics

An increase in the price of petroleum affects the cost of other things such as transportation, products, and services. This consequently leads to a surge in inflation rate when businesses pass on the higher operating expenses to customers.

High inflation caused by high energy costs affects economic growth by limiting consumer spending, hampering productivity, and discouraging investment.

Prime Business Africa presents 10 African countries with the highest cost of fuel in July 2024 according to GlobalPetrolPrices.com. The data was last updated on 8th July 2024.

The average price of gasoline around the world currently is 1.32 U.S. Dollars per litre