Africa fuel prices spike as Iran war shakes oil supply

African governments are implementing sharp fuel price increases as the Iran war disrupts global oil supply, pushing costs higher and raising inflation concerns across the continent.

Many African countries depend heavily on imported petroleum products, leaving their economies vulnerable to global supply shocks and price volatility. As crude oil prices rise, governments are under pressure to cushion households and businesses already facing high living costs.

In South Africa, authorities moved to ease the burden by temporarily reducing the fuel levy for one month. The decision followed pressure from labour unions and business groups concerned about rising transport and production costs.

Ghana has also adjusted its pricing. The National Petroleum Authority raised minimum fuel price floors for the 1 April to 15 April window, pushing petrol prices up about 15% and diesel nearly 19%. The move reflects the country’s reliance on imported refined fuel, which accounts for about 70% of supply.

President John Mahama said the government is considering further measures to cushion consumers, including reducing fuel margins and reviewing a recently introduced petroleum levy. Officials are also exploring a potential supply agreement with Nigeria Dangote refinery to stabilise imports.

Regional price surge raises economic concerns

Elsewhere, increases have been more pronounced. Malawi Energy Regulatory Authority raised petrol prices by 34% and diesel by 35%, citing rising global supply costs. The regulator noted that fuel prices surged significantly between January and March, prompting a shift to more frequent pricing adjustments.

Tanzania recorded a 33% increase in both petrol and diesel prices, although authorities said supply remains adequate. In West Africa, Mauritania raised petrol prices by 15.3% and diesel by 10%, while Gambia increased petrol prices by 18.79% and diesel by 12.20%.

Botswana and Mali have also announced notable fuel price hikes, highlighting the widespread impact of the global oil disruption.

Rising fuel costs are expected to ripple across economies, increasing transport expenses and pushing up prices of essential goods. Governments are increasingly concerned about the effect on vulnerable households.

Mauritania has introduced measures to ease the burden, including raising the minimum wage and offering cash transfers to low income families. Similar interventions may follow in other countries as policymakers try to balance fiscal constraints with social protection.

Economists warn that prolonged disruption in global oil supply could deepen inflationary pressures and slow economic recovery across Africa, particularly in countries heavily dependent on fuel imports.

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