Why fuel prices are high in some African countries — Report

The global average fuel price rose slightly in June 2025—from $1.25 to $1.27 per liter. But in many African countries, the impact has been far more severe.

The rise is putting extra pressure on consumers and businesses.

It’s also raising questions about what’s really driving prices up on the continent.

According to Business Insider Africa, using data from GlobalPetrolPrices, the Central African Republic currently has the highest fuel prices in Africa. Its rates are now among the most expensive in the world.

Global oil prices have remained relatively stable. Still, fuel costs in many African nations keep climbing.

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One key reason is currency depreciation. Many African currencies have weakened sharply against the US dollar, the standard currency for oil trade. This makes fuel imports more expensive.

Another major factor is the removal of fuel subsidies.

Countries like Nigeria have scrapped fuel subsidies to reduce budget deficits and cut government spending.

While this may benefit national finances in the long run, it causes immediate price hikes for everyday consumers.

Fuel prices are also driven up by poor infrastructure and high distribution costs.

Many countries lack local refining capacity and depend on importing refined fuel. This adds to the final cost.

Problems like bad roads, port delays, and limited storage facilities also push prices higher.

In Zimbabwe, fuel prices spiked over the weekend due to these kinds of logistical problems.

Though the global average price went up only slightly, African countries face a complex mix of internal and external issues—ranging from weak currencies and high taxes to outdated infrastructure—that continue to keep fuel prices high.

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