Cape Verde Freezes Gas Prices & Launches Fishing Subsidies
The Cape Verdean government has moved to shield citizens and the maritime industry from rising energy costs, announcing a freeze on cooking gas prices and new fuel subsidies for the nation’s artisanal fishing fleet.
Cooking Gas Prices Capped Through November
Following a Council of Ministers meeting on Tuesday, officials announced that the maximum price for butane gas in November will remain locked at October levels. The intervention effectively blocks a projected 38.8% price hike that would have otherwise hit consumers next month.
Under the freeze, a standard 12.5-kilogram gas cylinder will remain capped at 1,868 escudos (approximately €17). The government confirmed this price ceiling will remain in effect until the end of 2026, pending any further adjustments by the Council of Ministers.
Lifeline for Artisanal Fishers
In a bid to support the local economy, the government also introduced a monthly fuel subsidy for registered artisanal fishing vessels. Each active vessel with a valid license will receive 10,000 escudos (approximately €91) per month, distributed through ten fuel vouchers for gasoline or diesel.
The program, funded by the Autonomous Fisheries Fund, has a total budget of 21.4 million escudos (around €194,000). The support is scheduled to run through December 31, with officials conducting monthly evaluations to monitor the program’s impact.
Mixed Outlook for Other Fuels and Electricity
While cooking gas remains stable, the government provided a mixed outlook for other energy products. Forecasts suggest a slight decrease in gasoline and diesel prices for November, but kerosene and fuel oil are expected to continue their upward trend. To combat future volatility, the government plans to redirect tax revenues and fees from the third quarter into a “protection mechanism” to buffer against future price spikes.
Additionally, the government reaffirmed its commitment to subsidizing electricity through the end of 2026. Under the current scheme, the state fully covers price increases for low-income residents on social tariffs. For all other consumers, the government covers 70% of the price increases, leaving users to pay the remaining 30%. These discounts are applied directly to utility bills, with the government compensating providers directly.
Image: Pexels – Thomas Schwaak
