Cape Verde Opposition Demands Action as Fuel Prices Surge
Cape Verde’s largest opposition party, the Movement for Democracy (MpD), is demanding urgent government intervention to mitigate the impact of surging fuel prices. The party warns that failing to act will trigger a devastating chain reaction across the nation’s economy, driving up the costs of electricity, water, transportation, and food.
A Multiplier Effect on the Economy
Luís Carlos Silva, leader of the MpD parliamentary group, emphasized that the recent price hikes threaten the financial stability of both families and businesses. Speaking to Radio Cape Verde (RCV), Silva noted that because so much of the economy relies on fuel, the increases will have a “multiplier effect” that could cripple key sectors like agriculture.
Silva argued that the government has a clear “obligation to act,” pointing out that the 2024 Amending Budget already earmarked funds specifically to maintain the purchasing power of Cape Verdeans. He recalled previous interventions during the COVID-19 pandemic and the onset of the wars in Ukraine and the Middle East, where the government suspended automatic price-setting mechanisms to create a protective cushion against global market volatility.
Consumer Advocates Join the Call for Action
The Cape Verdean Association for Consumer Protection (ADECO) has echoed these concerns. The organization warned that the spike in fuel costs will inevitably lead to higher utility bills and more expensive groceries, placing an undue burden on the country’s most vulnerable households.
In September, fuel prices in Cape Verde are projected to rise by an average of 4.51%. Diesel used for electricity production is expected to see the sharpest increase, while butane gas offers a rare reprieve with a slight decrease of 0.21%.
Government Announces Targeted Subsidies
In response to the mounting pressure, the government—led by the African Party for the Independence of Cape Verde (PAICV)—announced a series of energy discounts effective from September 1 through the end of the year. According to the Official Gazette, consumers on social electricity tariffs will receive a 100% discount on the recent rate hike. For all other consumer categories, the government will cover 70% of the price increase.
To fund these protections, the state expects to spend up to 529 million escudos (approximately 4.8 million euros). This capital will compensate the nation’s two primary utility providers, the Electricity Distribution Company of Cape Verde (EDEC) and Boa Vista Water and Energy (AEB), for the revenue lost through the discounted rates.
Despite these measures, the MpD continues to push for further transparency, questioning when the full support package promised in the budget will be mobilized to ensure no citizen is left behind by the rising cost of living.
Image: Pexels – Imobach Laza Calvo
