Fuel pump prices vary a lot within the West African Economic and Monetary Union (WAEMU). The latest data from the regional central bank (BCEAO) places Senegal at the top while Niger sits at the bottom.
The price in Senegal is CFA990 per liter, far above its neighbors. This is due to fuel taxes, import costs, and the country’s subsidy policies, BCEAO said. Côte d’Ivoire and Burkina Faso also have relatively high prices, at around CFA875 and CFA850 per liter, respectively.
Niger, the least expensive, offers CFA499 per liter thanks to its local oil production and government subsidies.
Impact on Local Economies
These price differences have a direct effect on people’s daily lives and local economies. In countries where fuel is more expensive, transportation costs rise, pushing up the prices of food and consumer goods.
In Benin and Togo, where gas remains moderately priced at CFA680 per liter, governments have managed to strike a balance between keeping subsidies in check and protecting citizens’ purchasing power. Some even cut subsidies significantly last year.
But if these disparities persist, they could fuel the informal fuel trade between neighboring countries; especially between Niger and its neighbors, where gas costs nearly half as much. A similar situation already exists between Benin and Nigeria, where most of the fuel consumed comes from smuggling, a trade that has become almost "semi-official."
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