Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoire, the government has tried to lessen the impact on citizens by lowering fuel prices. However, despite these efforts, which address fuel that was the second most expensive in the West African Economic and Monetary Union (UEMOA) in 2024, just behind Senegal, the real impact on daily life has been slow to appear.

Fuel stations in Abidjan displayed new prices on April 11, 2025, just one week after the Ivorian government announced a reduction in the cost of several petroleum products. Unleaded gasoline dropped by 20 CFA francs, while diesel fell to 700 CFA francs from its previous price of 715 CFA francs. This measure was intended to ease the financial burden on the population, but it has raised questions about its real long-term impact.

“The 15 CFA franc reduction per liter is welcome, but it’s minimal compared to our daily fuel consumption,”

Near a bustling bus station, beside a crowded gas station, Sako Daouda, a taxi driver for the past 10 years, voiced his skepticism with a doubtful expression. “The 15 CFA franc reduction per liter is welcome, but it’s minimal compared to our daily fuel consumption,” he said.

Abidjan is not an isolated case. In Séguéla, 491 kilometers away, where motorcycle taxis are the primary mode of transport, reactions were similar. “The reduction is too small for us transporters,” said motorcycle driver Bakayoko Abou. “It doesn't really change the daily diesel budget.”

“The reduction is too small for us transporters. It doesn't really change the daily diesel budget.”

The government has not provided specific reasons for the price cut. However, it comes amid a 2.2% increase in transportation costs between December 2023 and December 2024, and a downward trend in global oil prices. Similar price cuts have been recorded in Mali, Morocco, and South Africa.

Impacts on Transport Costs

Fuel price fluctuations typically influence transportation costs, as fuel accounts for a large share of transporters' expenses. “Fuel represents 47% of operating costs in a transport vehicle,” said Touré Adama, head of Côte d'Ivoire’s intercity station coordination, in an interview with Life TV. As a result, fuel price hikes usually lead to fare increases for passengers and freight.

Conversely, fuel price drops reduce operating expenses and can, in some cases, allow for lower transport fares. However, Touré Adama argued that the recent reduction is too insignificant to impact costs. “15 CFA francs is negligible,” he said. “In 2023, prices rose by 100 CFA francs, and since then, we haven’t raised transport fares. We expected at least a 100 CFA franc cut before passing it on to passengers. We hope the government will do more.” Many Abidjan taxi drivers echoed his sentiment.

Transport is the third-largest household expense in Côte d’Ivoire

Diesel, widely used in the transport sector, has seen multiple increases in recent years, making the current reduction marginal. “We increased fares when there were several hikes. Now that it’s dropped by 15 CFA francs, we can’t lower fares. At the pump, the daily savings amount to just 400 CFA francs. That’s not enough,” Sako Daouda explained.

The situation is particularly concerning as transport is the third largest household expense in Côte d’Ivoire, according to the national statistics agency (ANSTAT). World Bank data from 2019 shows the average Ivorian spends 1,075 CFA francs ($1.83) per day on transport. This figure is likely higher today. With the minimum wage (SMIG) set at 75,000 CFA francs ($127) per month, that’s about $4.80 daily, making transport costs nearly 37% of an average worker’s income.

The situation is particularly concerning as transport is the third largest household expense in Côte d’Ivoire, according to the national statistics agency (ANSTAT).

Despite being an oil producing country, Côte d’Ivoire recorded the second highest fuel price in the West African Economic and Monetary Union (UEMOA) in 2024, at 875 CFA francs, just behind Senegal. Transport accounts for about 7% of GDP, highlighting its vital role in national mobility. While fuel prices directly affect transportation costs, they are not the only factor. Government regulations, market demand, and maintenance costs also play a role.

Still, the fuel price cut has offered some relief to consumers, particularly private vehicle drivers. “I’m happy with the 20 CFA franc drop. It’s small, but it helps cut fuel spending,” said Yves Kouassi, filling up his car at a station in Yamoussoukro.

Other Sectors Affected

Fuel price changes also heavily influence Ivorian agriculture, a cornerstone of the economy. Transporting crops to markets and distribution centers significantly impacts food prices.

Transport costs have a strong influence on the price of staple foods

Adélaïde Meghué, head of Côte d'Ivoire’s fresh produce market players, said the fuel cut has had little impact. Speaking to Agence Ecofin, she reported no visible change in transport costs. “As far as I know, the fuel price cut hasn’t affected transport. Unless I’m mistaken, there’s been no movement in food prices,” she said.

Many shoppers interviewed by Ecofin echoed her view, noting persistent high food prices. While fuel prices matter, other factors, such as rainfall, seasons, climate change, and road conditions, also shape food costs. Off-season produce tends to be more expensive.

Social Measures Amid Price Increases

To stabilize fuel prices and support the economy, the government provides substantial subsidies. In 2022, it invested 500 billion CFA francs ($850.95 million) in energy subsidies. “For every liter of diesel sold at 615 CFA francs, the government subsidizes 469 CFA francs. For gasoline sold at 735 CFA francs, the subsidy is 285 CFA francs,” President Alassane Ouattara announced in a national address on August 6, 2022.

In 2022, the government invested 500 billion CFA francs ($850.95 million) in energy subsidies to stabilize fuel prices.

These subsidies have helped curb living costs and keep inflation between 5.4% and 5.7%, far below some neighboring countries. In 2024, subsidies for gasoline and diesel reached 843 billion CFA francs ($1.43 billion), according to the Ministry of Mines, Petroleum and Energy. In addition, the government has capped prices on key consumer goods like rice, refined palm oil, sugar, meat, tomato paste, milk, and pasta to fight inflation and protect purchasing power.

To ease transport costs, it scrapped a 22,500 CFA franc fine for transporters in 2023 after fuel prices rose. Though no new measures accompanied the latest price cut, experts say the government is working to enforce the reduction.

Energy economist and statistician Sedji Siam Ize noted, “The government is implementing mechanisms to ensure fuel price drops reflect in transport costs. Tools like the National Council Against High Living Costs and the High Council of Road Transport Employers help monitor and negotiate adjustments.”

Thanks to such efforts, Côte d’Ivoire has maintained moderate inflation in recent years, 2.4% in 2020 and 3.5% in 2024, according to the World Bank.

Fiscal Risks

The International Monetary Fund (IMF) warns that fuel subsidies carry fiscal risks, reducing public revenue and making tax income more volatile. Under a 2023 reform agreement with Abidjan, the IMF advised gradually phasing out subsidies to strengthen fiscal sustainability and redirect funds to social spending. It recommended targeted support for vulnerable households and transparent fuel pricing mechanisms aligned with market fluctuations.

As part of an economic reform program negotiated with Abidjan in 2023, the IMF recommended a gradual reduction of subsidies to enhance fiscal sustainability and redirect resources toward social spending.

“In early 2023, the government raised gasoline prices and reinstated a pricing mechanism that phased out costly implicit subsidies and resumed fuel tax revenue collection,” the IMF reported.

As part of this investigation, repeated attempts to obtain comments from Côte d'Ivoire’s Ministry of Transport were unsuccessful. The government has only reduced fuel prices twice in five years. The last cut, in May 2020, saw unleaded gasoline fall from 595 to 570 CFA francs (a 25 CFA franc drop) and diesel from 590 to 570 CFA francs (a 20 CFA franc drop). If support measures were expanded or better targeted, their impact on transport and food costs might be more visible for Ivorian households.

Lydie Mobio