Thanks, or no thanks, to the oil price crash, consumers can now heave a sigh of relief, though some remain disgruntled that the price point reduction is not commensurate with the magnitude of the oil crash.
Here are the 11 sub-Saharan African countries that have cut down fuel prices according to Mail & Guardian Africa:
Kenya: The Energy Regulatory Commission (ERC) in this significant East African player last week cut prices by 16 percent to an average 93 Shillings ($1.02) from Sh110 ($1.20). Over the next couple of weeks, Diesel is expected to sell at Sh83.3 ($0.91). However, the ERC has indicated that it would likely reduce prices again sometime in February as cheaper purchases are acquired.
Tanzania: Here, the excuse for not having lower prices is tax. The Energy and Water Utility Regulatory Authority says a litre of fuel carries additional costs regardless of
global prices. However, a litre of petrol now sells for Sh1,955 ($1.1), a reduction from Sh2,267 ($1.28) in September 2014. Diesel is obtainable at Sh1,846 ($1.02) all the way from Sh2,091 ($1.16) in September.
Uganda: Uganda, unlike its Eastern African colleagues, does not have a regulatory agency; therefore, the free market largely dictates prices. Nationals now purchase petrol now at 3,650 Ugandan shillings ($1.26) for a litre, a reduction from about Sh3,760 ($1.30) in October 2014. Diesel retails at Sh3,150 ($1.09).
Rwanda: Like Kenya, prices in Rwanda have reduced and are expected to reduce some more. As of this week, petrol retails at 1,030 Rwandan Francs ($1.49), falling from Rwf 895 ($1.29). The Rwanda Utilities Regulatory Authority (RURA) has, after negotiations with operators, reduced public transport fares from Rwf 20 ($0.03) per kilometer, to Rwf18 ($0.02).
Ethiopia: Price reductions in Ethiopia have been in effect since last month, with new rates of 19.4 birr ($0.96) per litre of petrol, and 17.49 (0.86) for every litre of diesel. This was the first time in over a year such reductions were seen in the Horn of Africa, and the effects were seen in fuel shortages.
Ghana: Prices have been slashed by 10 percent this month, but the citizens want more, understandably. Petrol now sells for 4.5 cedis ($1.36) per litre, and the National Petroleum Authority (NPA) says this is the best it can do if it will recoup subsidy losses and clear debts.
Senegal: Here, prices were reduced last month from 889 CFA ($1.57) to 799 CFA ($1.4). The case in this West African country is unique, though, as prices of other commodities like rice, flour, gas and rents were reduced as well.
South Africa: Petrol currently retails at 11.15 rand ($0.96) per litre in the southernmost African country. While the South African government regulates the retail price of petrol, it doesn’t have complete control over diesel prices.
Malawi: The country ranks very high on the list of African countries with rather expensive petroleum prices. Falling from 856.7 kwacha ($1.84) last year, petrol is now available at 760.40 kwacha ($1.64) effective this month while diesel goes for 758 kwacha ($1.65).
Zimbabwe: Setting price points of $1.20 level for diesel and $1.32 for petrol as well as a deadline of Wednesday, January 14, 2015 for full compliance, the Zimbabwean government has upset the dynamics in the country’s oil sector and fuel stations are scrambling to adhere to the new directive. Prices were at an average of $1.49 last year.
Nigeria: Africa’s largest economy is the latest country to join the price slash train. The country’s Petroleum Minister, Deziani Alison-Madueke, who is now the new OPEC President, made the announced officially on Sunday night. In an official statement, she said due to a fall in oil prices, the landing cost of petroleum products have seen a drastic drop, making it cheaper for marketers and subsequently consumers. The government therefore cut petrol prices by N10, from N97 to N87.
Globally, oil prices are still falling. With the Brent crude selling for $48 as of yesterday, it will be quite some time before these trends reverse.
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