UEMOA: Fuel Market Shows Price Gaps Ranging from Single to Double
Faced with escalating global prices due to geopolitical tensions in the Middle East, member countries of the monetary zone display tariff gaps reaching a ratio of one to two.
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Set at 990 FCFA per liter of super in Senegal against 499 FCFA in Niger, the pump price suffers the direct impact of the Brent barrel's rise, climbing from 64 dollars in January to nearly 93 dollars. Concerned about containing the increase in diesel, set at 940 FCFA in Mali and 750 FCFA in Côte d'Ivoire or Burkina Faso, public treasuries struggle to maintain import subsidy mechanisms.
The bill for downstream petroleum support exceeds 245 billion FCFA in Dakar since the start of the budgetary exercise.
Meanwhile, possession of local refining tools offers partial relief in Niamey, preserving moderate consumption tariffs. À the opposite, the automatic adjustment policy applied in neighboring Ghana and Nigeria immediately transmits external shocks to households, avoiding the accumulation of budget deficits. Thanks to the targeted revision of administered prices carried out in May in Benin and Togo, with a liter of super raised to 725 FCFA, tax administrations attempt to stabilize their intervention margins without asphyxiating the economic fabric.
Embedded in a dynamic of permanent arbitrage, the management of state aid forces public decision-makers to choose between degradation of national accounts and preservation of purchasing power.
The gradual reduction of financial transfers to importers will condition the sanitation of sub-regional budgets.
The sustainability of pricing models will depend on the durable stabilization of global crude oil prices.
The progressive harmonization of regional energy policies will constitute the indispensable prerequisite to resist future petroleum shocks.
Asaba
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