Cape Verde Fuel Prices Surge 4.5% in September Update
Fuel prices in Cape Verde are set for an average increase of 4.51% throughout September, driven by rising international oil costs. The price adjustments, announced by the Multisectoral Economic Regulatory Agency (ARME), show a significant spike in diesel costs, even as butane gas consumers see a slight reprieve.
Breakdown of New Fuel Rates
Starting this month, motorists and businesses will face higher costs at the pump. Gasoline has risen by 4.34%, bringing the price to 175.40 escudos (€1.59) per liter. Diesel saw a more sharp increase of 7.49%, now retailing at 169.40 escudos (€1.54) per liter.
In contrast, butane gas—a staple for many households—has become marginally more affordable. The price of a standard 12.5-kilogram cylinder dropped by 0.21%, settling at 1,767 escudos (€16.03).
Market Drivers and Currency Impact
ARME attributed the price hikes to the volatile international market. During August, the average price of Brent crude oil rose by 4.45%. While petroleum derivatives marketed in Cape Verde surged by an average of 6.64%, the impact on local consumers was partially softened by a 0.97% appreciation of the Euro against the US Dollar.
Addressing the Deficit
Beyond market fluctuations, September’s pricing includes a specific component designed to recover a portion of the country’s accumulated fuel deficit. This deficit stems from a previous period when the government suspended the standard price-fixing mechanism to shield consumers from extreme volatility.
ARME regulates and updates the maximum price for all fuel types at the beginning of every month to ensure the local market reflects global economic shifts.
Image: Pexels – Erik Mclean
