Fuel prices surge in Africa as Iran war hits supply

African governments have imposed sharp fuel price increases as the Iran war sends global oil prices surging and threatens to spark inflation across the continent.

African countries import most of their petroleum products, leaving many highly vulnerable to supply disruptions.

South Africa, one of the continent's largest economies, on Tuesday reduced its fuel levy for one month to help curb further prices rises in April, after trade unions and business groups pressured the government to intervene.

CONSIDERING FURTHER STEPS

In Ghana, the National Petroleum Authority raised mandatory minimum price floors for the April 1–15 pricing window, pushing petrol prices up around 15% to 13.30 cedis ($1.21) per litre (0.26 U.S. gallon) and diesel up roughly 19% to 17.10 cedis.

President John Mahama said on Monday that the government was considering steps to cushion consumers, including reducing fuel margins and reviewing a recently imposed levy on petroleum products.

He also raised the prospect of a formal supply agreement with Nigeria's Dangote refinery to secure alternative sources of refined petroleum. Ghana imports about 70% of its refined fuel.

In Malawi, the Energy Regulatory Authority (MERA) imposed even steeper increases, raising petrol prices by 34% to 6,672 kwacha ($3.89) per litre and diesel by 35% to 6,687 kwacha from Wednesday.

Petrol and diesel jumped by 42% and 87% between January and March on a free-on-board basis, MERA said, and that suppliers had shifted to fortnightly pricing averages.

Tanzania's Energy and Water Utility Regulatory Authority has set a new petrol price cap of 3,820 shillings ($1.49) per litre in Dar-es-Salaam, up 33% from March. Diesel also rose 33% to 3,802 shillings.

The regulator said fuel supply remained adequate to meet the country's needs.

VULNERABLE HOUSEHOLDS

Mauritania on Tuesday raised petrol by 15.3% and diesel by 10%. Economic Affairs Minister Abdallah Ould Souleymane, who compared the situation to the 1973 oil crisis, said the government would offset the impact on vulnerable households by raising the minimum wage and providing cash transfers to low-income families.

Gambia increased fuel prices by 18.79% for petrol and 12.20% for diesel on Wednesday, a finance ministry official told Reuters.

Authorities in Botswana and Mali have also announced sharp fuel price increases.

($1 = 10.9500 Ghana cedi)

($1 = 1,717.0200 Malawian kwacha)

($1 = 2,570.0000 Tanzanian shillings)

-Reporting by Emmanuel Bruce in Accra, Nuzulack Dausen in Dar-es-Salaam, Frank Phiri in Blantyre, Brian Benza in Gaborone, Kissima Diagana in Nouakchott, Pap Saine in Banjul and Fadimata Kontao in Bamako; writing by Bate Felix; editing by Jason Neely/Reuters