Cape Verde Fuel Prices Surge 12%: New Protection Measures
The Cape Verdean government is moving to overhaul its fuel price stabilization mechanisms following a sharp 12% spike in gasoline and diesel costs. The price hike, which took effect today, reflects volatile international markets and has pushed fuel costs to their highest levels in nearly two years.
Expanding the Safety Net
In a statement released Tuesday, the executive branch announced it is refining legal frameworks to shield citizens from market shocks. The government aims to adapt a stabilization mechanism currently used for cooking gas to cover a broader range of fuels. This new approach will not only address month-to-month fluctuations but also account for the cumulative impact of successive price increases on the public.
“The objective is to find solutions that allow for better protection of families and the economy, while simultaneously ensuring the financial sustainability of the State and the security of the country’s fuel supply,” the government stated.
Prices Hit Record Highs
Data from the Multisectoral Regulatory Authority of the Economy (ARME) shows that gasoline has risen to 197.2 escudos (€1.79) per liter, while diesel climbed to 190.3 escudos (€1.73). These figures mark the highest prices recorded since at least January 2024 and represent the largest single monthly increase in that period.
The price of cooking gas also saw a 5.7% increase, rising to 1,868 escudos (€19.96) for a standard cylinder. However, authorities noted that existing mitigation measures prevented an even steeper climb for households.
Global Factors at Play
Regulators attributed the surge to two primary factors: the rising cost of oil and refined derivatives on the global market and unfavorable exchange rate variations throughout September. As an island nation heavily dependent on imports, Cape Verde remains particularly vulnerable to these external economic shifts.
The government’s proposed intervention seeks to balance the immediate need for affordable energy with the long-term necessity of maintaining the nation’s strategic fuel reserves and fiscal health.
Image: Pexels – Erik Mclean
