FEATURES: EnergyDay pick of 10 African countries with cheapest prices
Ilenre Irele
It is no longer news that quite a number of African countries are in throes of struggle with the energy crisis and a series of reforms in the oil and gas sector. However, there quite a number of analysts that say in spite of the challenges in the oil and gas sector in Africa, many countries on the continent have the lowest prices of gasoline, also known as petrol, globally.
Recall that Nigeria’s president, Bola Ahmed Tinubu, in a bid to reform the oil and gas sector, announced abruptly on the day of his swearing –in removal of fuel subsidy which has sparked untold hardship in the land, rising prices of basic commodities and transport hiccups for the masses.
The decision further led to unwholesome and unprecedented hardships to many homes and businesses and was further heightened recently with fuel price hikes.
In particular, Nigeria, Africa’s largest oil producer, is said to be experiencing a transitional period following the removal of fuel subsidies, which the NNPC has been navigating through strategic reforms.
With an Indigenous refinery like Dangote coming to life, many Nigerians consider it a relief from the days of buying fuel at an unprecedented price. However, the subsequent pricing battlebetween Dangote refinery and NNPCL, which today is still shrouded in secrecy and opaqueness sent many hopes back to rest.
Like Nigeria, many African countries still battle with varying energy crises and the nature differs from one country to another, but in Nigeria according to experts like Dr. Olufemi Omoyele, ‘’ the crises is structural and systemic.’’ Unlike Nigeria, many still have active fuel subsidy payments in their books.
Energy takes a look at some African countries with the lowest petrol prices as of September 2024, ranked by Business Insider Africa and the Global Petrol Prices. Note: These prices are in Naira equivalent as all the countries have different currencies.
1. Libya – N52 per Litre
Libya is on top of the list with the cheapest fuel prices not only in Africa but worldwide. This boils down to the country’s vast oil reserves and government subsidies, which continue despite ongoing political instability. The heavy subsidies are a legacy of the late Muammar Gaddafi’s regime and are maintained as a way to support the population during times of economic and political hardship.
2. Egypt – N505 per Litre
Egypt follows closely, benefiting from strong government subsidies and a well-developed oil refining sector. The country’s strategic location and infrastructure, combined with subsidy mechanisms, allow it to keep fuel prices low while managing inflation. Egypt has also been focused on improving its energy sector, which helps keep prices stable.
3. Angola – N529 per Litre
Angola, a major oil producer in Africa, leverages its crude production to keep domestic fuel prices low. The government controls a significant portion of fuel distribution, ensuring that prices remain affordable despite global fluctuations. The country’s efforts to improve refining capacity, along with subsidies, keep prices in check.
4. Algeria – N568 per Litre
Algeria, with its substantial oil and gas reserves, has been able to maintain low fuel prices. The government subsidizes fuel to keep it affordable for citizens. Algeria’s domestic oil production covers most of its fuel needs, which shields it from global price hikes.
5. Nigeria – N865 per Litre
Nigeria’s fuel prices have been a hot topic, especially with recent NNPCL reforms and the roll-out of the Dangote Refinery petrol. After the removal of fuel subsidies in 2023, Nigeria’s prices increased significantly. However, the anticipated benefits of the Dangote Refinery, which has a refining capacity of 650,000 barrels per day, are expected to help stabilise fuel prices by reducing dependence on imported refined products.. The NNPCL’s role in adjusting to these changes and managing fuel supply continues to be crucial for Nigeria.
6. Sudan – N1,147 per Litre
Despite its economic difficulties, Sudan maintains low fuel prices through a combination of subsidies and government controls. These efforts are aimed at minimising social unrest, as the country faces inflation and currency devaluation. The Sudanese government has managed to keep fuel prices relatively low even amid economic turmoil.
7. Ethiopia – N1,152 per Litre
Although Ethiopia is not an oil-producing country, it manages to maintain low fuel prices through government intervention and import strategies. The government uses price controls to ensure that fuel remains affordable, even as global oil prices rise. This has been crucial in supporting Ethiopia’s ongoing economic growth.
8. Tunisia – N1,371 per Litre
Tunisia has relatively low fuel prices compared to other North African nations. Government subsidies and economic reforms aimed at stabilizing the economy have kept fuel affordable. However, rising global oil prices have created pressure for Tunisia to reassess its subsidy strategy.
9. Liberia – N1,503 per Litre
Liberia’s government has prioritised keeping fuel prices low to support economic recovery post-conflict. The combination of low domestic demand and government control over pricing has made fuel relatively affordable.
10. Ghana – N1,617 per Litre
Ghana has managed to keep its fuel prices under control, despite being a net importer of oil. The government’s efforts to balance import costs with subsidies have made fuel more affordable, which is critical for the country’s economic stability.
