What’s behind the petrol price gaps across Africa?

This disparity reflects more than regional economics; it tells the joint impact of policy choices, infrastructure capabilities, import dependencies, and the legacy of state intervention in energy markets.

 Zimbabwe currently records the highest petrol price on the continent at $1.54 per litre, followed closely by Ghana ($1.39), the Central African Republic ($1.375), and Kenya ($1.37). These elevated prices are often driven by limited refining capacity, growing transport costs, or reduced government subsidies.

Zimbabwe’s dependence on imports and foreign currency shortages leads to higher costs. Meanwhile, in Kenya, state-imposed levies and a structured fuel pricing formula contribute significantly to the price.

On the contrary, Libya offers some of the cheapest petrol in the world, with prices as low as two cents per litre. This is primarily due to long-standing government subsidies and abundant oil reserves. In Algeria and Angola, where prices are $0.26 and $0.24, respectively, similar state-backed policies help keep fuel affordable despite shifts in the global market.

The global average petrol price stands at around $1.30 per litre. While Africa’s average is slightly below this, the continent features extreme outliers at both ends of the spectrum. This is partly due to Africa’s unique combination of resource richness and infrastructural limitations.

Oil-rich countries may keep prices low through subsidies, but fragile economies and governance challenges mean that many consumers still pay high prices for basic energy needs.

Overall, fuel prices across Africa in June are influenced by a range of interlinked factors, with government subsidies and taxation playing a key role. Countries such as Libya, Algeria, and Egypt maintain some of the lowest prices on the continent thanks to long-standing fuel subsidies.

These subsidies reduce the burden on consumers but can place a strain on public finances. In contrast, countries like Kenya and South Africa impose multiple taxes and levies on petrol. In Kenya, for instance, the Energy and Petroleum Regulatory Authority (EPRA) updates prices monthly based on a formula that includes global oil prices, importation costs, and distributor margins, leaving consumers more exposed to international market swings.

The ability to refine crude oil domestically also has a significant impact on fuel prices. Angola and Algeria, both significant oil producers, refine large volumes of oil within their borders, helping to keep prices relatively low.

However, many African countries export their crude oil and then re-import refined products due to a lack of refining infrastructure. This practice adds considerable costs from international shipping and processing, underlining the infrastructure shortfalls that continue to affect even resource-rich nations.

For countries that rely heavily on fuel imports, price volatility is often driven by global market trends and currency fluctuations.

In nations with weaker local currencies, any depreciation directly increases the cost of imported fuel, which is typically priced in US dollars. As a result, even modest exchange rate shifts can push pump prices significantly higher, especially in economies with high inflation or fiscal instability.

Geography and transport logistics also play a role. Innerland countries like Chad, Uganda, and Mali rely on overland fuel transport from distant seaports, which raises logistical costs. These expenses are eventually passed down to consumers, resulting in higher retail prices compared to coastal nations with easier access to international shipping routes.

The way fuel prices are regulated further contributes to regional disparities. In some countries, governments directly control fuel pricing to shield consumers from global shocks, but this approach can lag market realities and lead to supply issues. In more liberalised markets, prices fluctuate more freely in line with international oil trends, as is the case in South Africa, where adjustments are made every month.

Lastly, operational inefficiencies and profit margins in the supply chain also factor into retail pricing. In some parts of Africa, the lack of competition, outdated infrastructure, or monopolistic control over distribution networks inflates fuel costs.

The final price consumers pay often reflects not just the cost of the fuel itself, but also the margins of fuel station owners, wholesalers, and refiners operating in the system.