Cape Verde Hikes Fuel Prices Amid Government Price Cap
Fuel prices across Cape Verde are set to rise by an average of 5% starting today, following a government intervention to shield consumers from even steeper international market spikes. The Multisectoral Economic Regulatory Agency (ARME) announced the new rates after the government moved to temporarily suspend the country’s automatic pricing mechanism.
New Rates at the Pump
Under the new pricing structure for April, motorists will pay 139.89 escudos (1.27 euros) per liter for gasoline, while diesel has been set at 117.52 escudos (1.07 euros) per liter. Households will also feel the impact, with a 12.5-kilogram bottle of butane gas now costing 1,804 escudos (16.38 euros).
While costs are rising, ARME noted that the increase would have been significantly more severe without a recent government resolution. This emergency measure suspends the standard automatic updates and caps all fuel price hikes between 2% and 8% through the end of June.
Protecting the Economy Amid Global Volatility
The Cape Verdean government justified the suspension by citing extreme volatility in international oil markets driven by ongoing geopolitical tensions. By decoupling local prices from global highs, officials aim to mitigate the rising cost of living and protect strategic economic sectors from energy shocks.
The resolution, which remains in effect until June 30, also establishes a contingency plan to ensure fuel security. This includes setting distribution priorities for essential services, electricity production, and key economic agencies should supply constraints arise.
Sustainability and Supply
Because Cape Verde imports 100% of its fuel, the nation is highly vulnerable to global shifts. The new decree includes mechanisms designed to ensure the financial sustainability of the energy sector while coordinating closely with private operators to guarantee a steady supply.
ARME typically updates maximum fuel prices on a monthly basis. These emergency measures will remain under constant review and may be adjusted depending on how international markets evolve over the second quarter of the year.
Image: Pexels – Ekaterina Belinskaya
