• Subsidies cost $180M in 2024; removal could raise fuel prices up to 30%
• Reform postponed to 2026 pending social protection and market conditions

Gabon’s government will keep fuel subsidies in place for now.  Petroleum and Gas Minister Sosthène Nguema Nguema announced the decision on Nov. 6, according to local media.

He said the measure was needed to protect economic stability and social cohesion. Subsidies were originally set to be phased out in January 2026, but after reviewing the plan, the government decided to suspend it, citing the heavy impact an abrupt removal would have on households and the transport sector.

High Cost and World Bank Concerns

Local reports estimate the subsidies cost about 110 billion CFA francs ($180 million) in 2024. Economist Willy Ontsia, quoted by Gabonreview, said removing them could have driven fuel prices up 15% to 30%.

Officials said the decision was made to maintain social stability, warning that higher fuel prices would automatically raise transport and essential goods costs, cutting into purchasing power. The World Bank, in a report on Gabon’s energy reforms, noted that the subsidies mainly benefit wealthier households. It urged the government to create targeted compensation programs before any future reforms.

While the phase-out has been postponed, the plan has not been scrapped. Authorities now intend to gradually implement the reform, likely in 2026, once social protection measures are in place and global oil prices become more favorable.

Abdel-Latif Boureima