Fuels: here are the countries where the prices are the most or the least expensive in West and Central Africa

#Mauritania : Prices at the pump have increased almost everywhere on the continent, despite the significant subsidies supported by the States in order to mitigate the impact on citizens. These vary greatly from one country to another (see Table) and the differences in prices are sometimes very significant.

Well before the Russia-Ukraine war, the tension was palpable on the prices at the pump because of the rise in the price of a barrel of oil and the cost of maritime freight, knowing that African countries are almost all fuel importers, including major oil producers (Nigeria, Angola, etc.). The Ukrainian crisis has accentuated this upward trend and has led to fuel shortages and price increases at the pump in many countries, despite the interventions of the public authorities with subsidies on hydrocarbons, the bills of which are everywhere. exploded at the level of the continent.

Because petroleum products are imported, in addition to soaring prices and sea freight, the depreciation of African currencies, particularly the CFA franc (FCFA), vis-à-vis the US dollar increases the cost of hydrocarbon imports.

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As a result, prices at the pump have risen sharply, everywhere in Africa, with a few exceptions. The latest increases were recorded in Togo where since July 19, the pump prices of super unleaded fuels and diesel increased by 17.64% respectively, from 595 FCFA to 700 FCFA/litre (0.92 to 1. 09 dollars) and 40.49% going from 605 FCFA to 850 FCFA (0.94 to 1.01 dollars). The authorities had already revised fuel prices upwards last March.

Overall, according to the data collected by our correspondents in West, Central and East Africa, prices at the pump diverge considerably from one country to another (see Table). This situation can be explained by several factors: availability of oil and refinery, landlocked country, level of taxes on hydrocarbons, cost of transporting fuels, etc.

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It is in Niger, a new oil-producing country, that the lowest prices at the pump are recorded in the region with 540 FCFA, or 0.84 dollars, for a liter of gasoline, and 538 FCFA, or 0.84 dollar, for that of diesel. This is explained by the fact that it is an oil-producing country, but above all by the fact that when hydrocarbons were discovered, the former president, Mamadou Baba Tandia, had demanded from Chinese operators the installation of an oil refinery on Nigerien territory. A strategic vision that allows this landlocked country not to be dependent on hydrocarbon imports. Behind follow Gabon and Cameroon, a small producer of hydrocarbons where prices are under the dollar bar, both for gasoline and diesel.

Comparison of fuel prices in 10 African countries

	Essence		Gasoil
Pays	Local currency	and dollars	Local currency	One dollar
Burkina Faso	715 F CFA	1,11	645 F CFA	1,01
Cameroon	630 F CFA	0,98	575 F CFA	0,9
Ivory Coast	735 F CFA	1,15	615 F CFA	0,96
Gabon	605 F CFA	0,94	585 F CFA	0,91
Guinea	12,000 Guinean F	1,38	12,000 Guinean F	1,38
Mali	870 F CFA	1,36	850 F CFA	1,33
Mauritania	56,6 ouguiyas	1,5	49,96 ouguiyas	1,33
Niger	540 F CFA	0,84	538 F CFA	0,84
RDC	2.495 Congolese francs	1,25	2.485 Congolese francs	1,24
Senegal	890 F CFA	1,39	655 F CFA	1,02

Among the countries where fuel is more expensive is Mauritania with 56.6 ouguiyas, or 1.5 dollars, for a liter of gasoline and 49.96 ouguiyas, or 1.33 dollars, for diesel, since the last 30% rise in prices at the pump, mid-July. Despite this sharp increase justified by the surge in these prices internationally, the State ensures that it continues to subsidize fuel to the tune of 21.5 ouguiyas for gasoline and 29 ouguiyas for diesel.

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Behind Mauritania, Guinea follows. In this country, it is necessary to release 12,000 Guinean francs, or 1.38 dollars, for a liter of gasoline or diesel. Ditto for Senegal where it takes 890 FCFA, or 1.39 dollars, for a liter of gasoline and only 655 FCFA, or 1.02 dollars for diesel. This is also the case for Mali where it takes 870 FCFA (1.36 dollars) for a liter of gasoline, and 850 FCFA (1.33 dollars) for diesel.

Something difficult to understand, gasoline costs less in Burkina Faso (715 FCFA, or 1.15 dollars), a country that is landlocked and does not produce oil, than in Côte d’Ivoire, Senegal and Mauritania, countries coastal. This is largely explained by the significant taxes on petroleum products implemented by certain States and which represent a significant part of the price of fuel at the pump. The increases also depend on the price adjustment policy adopted by the States.

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Thus, in Côte d’Ivoire, the government readjusts the price at the pump every month, taking into account the evolution of the price of a barrel of oil on the international market. This helps to understand the current level of fuel prices. However, the authorities have chosen to pass on the increase only to gasoline, which is more generally used by individuals. Thus, since the beginning of the year, the price of a liter of gasoline has increased three times, going from 615 FCFA to 635 FCFA in February, from 635 to 695 FCFA in April and from 695 to 735 FCFA in June (from 0 .95 down to $1.14).

However, for diesel, the government has preferred to keep the price unchanged since the start of the year. This choice is explained by the fact that diesel is the fuel used by transport operators and an upward readjustment would automatically lead to an increase in passenger and freight transport fares. In Côte d’Ivoire, since the beginning of the year, hydrocarbon subsidies reached 405 billion FCFA (631 million dollars) at the end of June 2022, due in particular to the maintenance of the price of diesel at 615 FCFA (0.95 dollar), gas, kerosene, etc.

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In Senegal, on June 5, the price at the pump of super fuel increased by 115 FCFA per liter, from 775 FCFA to 890 FCFA (1.20 to 1.38 dollars), a sharp increase of 14, 83%, justified by the persistence of exogenous shocks which caused the rise in the prices of petroleum products on the international market. According to the Senegalese authorities, despite this high level per liter of gasoline, the State supports a subsidy of 292 FCFA (0.42 dollars) per liter of super, the price of which should be 1,182 FCFA (1.84 dollars). the liter at the pump. If the price of gasoline has risen sharply, like in Côte d’Ivoire, those of diesel, diesel, regular gasoline, canoe gasoline, butane gas and kerosene have remained unchanged.

In Cameroon too, subsidies aimed at keeping prices at the pump unchanged cost the state 317 billion FCFA (494 million dollars) in the first half of the year, compared to 100 billion FCFA (155 million dollars) for the whole of Cameroon. year 2021. Cameroon imports all of its fuel since the fire, in May 2019, of Sonara, its only oil refinery. These subsidies made it possible to maintain prices at 630 FCFA (0.98 dollars) for a liter of super and 575 FCFA (0.89 dollars) for diesel. In the absence of subsidies, according to calculations by the Cameroonian authorities, the price of a liter of gasoline and diesel should stand at 1,027 FCFA (1.60 dollars) and 1,016 FCFA (1.58 dollars) respectively.

>>> READ ALSO: Cameroon: the high cost of the public subsidy at the origin of the shortage of fuels

In short, price increases at the pump are a reality in Africa, despite the efforts made by the authorities to mitigate their impact on the population through subsidies. However, this situation will be untenable if the crisis and the high level of prices persist, knowing that the public finances of African countries have been under great strain since 2020 because of the health crisis. African leaders must therefore draw the consequences of this crisis and opt for lasting solutions.

Beyond that, the exogenous impacts of crises on African economies should push States, particularly those that are not oil and gas producers, to step up their shift towards renewable energies.

First, in terms of electricity production, African countries have enormous potential via renewable energies which are very little exploited (solar, wind, geothermal, etc.).

>>> READ ALSO: Nigeria: the first African oil producer still without fuel

Then, in addition to investments in renewable energies, for economic and health reasons, African countries must also take the turn of electric cars. And for good reason, the transport sector is one of the biggest consumers of energy. For example, if we take the case of Morocco and 2019 as a reference year, the transport sector alone accounted for 41% of energy use, ahead of residential (25%), industry (19%), the tertiary sector (8%) and agriculture (7%). Thus, since African countries have aging vehicle fleets, and therefore consume more fuel, the share of transport should represent more than half of energy use in these countries.

Knowing that transport is a very energy-intensive sector, it is therefore urgent for African countries to focus on renewable energies by exploiting all the potential offered by solar, wind, geothermal, biomass and hydroelectricity. , electric cars…

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Finally, the other problem in Africa is that while the States which globally administer fuel prices tend to increase prices at the pump to cope with soaring prices on the international market, we note that in several countries, prices never readjust downwards with the decline in prices on this same international market, except in negligible proportions. And it is the States that benefit from this situation thanks to taxes and levies on fuels which contribute strongly to the budgetary revenues of the States.