Across the world, many countries maintain some level of fossil fuel subsidies to keep prices at affordable prices for their citizens.
However, these subsidies come at a substantial cost. The costs spiralled when governments worldwide intervened to shield their citizens from the high energy bills in the aftermath of Russia’s invasion of Ukraine.
Hence, the global landscape of fossil fuel subsidies witnessed a remarkable transformation, with expenditures soaring to an unprecedented $1 trillion last year as reported by the International Energy Agency (IEA).
At a country level, subsidies exert significant fiscal pressures, leading to higher increased taxation, elevated borrowing, reduced public expenditure, and the inefficient allocation of an economy’s resources. Some African countries for instance have stratospheric debt to GDP ratio.
These factors have compelled various African countries to embark on a path of reassessment, resulting in some of them opting for the removal of fuel subsidies.
Here is a list of African countries that removed fuel subsidies between 2022 and 2023.
Nigeria – May, 2023
Ghana – March, 2023
Angola – June, 2023
Kenya – September, 2022
