More belt tightening with more expensive fuels in Cape Verde

Fuel prices suffer a generalized increase from this Wednesday, February 1st, in the country. According to the latest decisions by the Multisectoral Regulatory Agency for the Economy (ARME), which updates the new table of costs for the same products, there was a more significant increase in butane gas (5.92%,) and gasoline (7.26%). . A fact that will force Cape Verdeans to tighten their belts even more, after the high price increases of other products following the negative impact of the war in Ukraine on Cape Verde's economy.

According to the new price list approved by ARME, gasoline is now sold for ESC 138.90/L; oil 158.00 ESC/L; normal diesel at ESC 142.90/L; diesel for electricity at ESC 133.80/L; marine diesel at ESC 112.10/L; fuel 380 to 94.40 ESC/Kg and fuel 180 to 99.40 ESC/Kg.

In turn, butane gas is now sold in bulk for ESC 153.90/Kg; 3KG bottles costing 439 escudos; those of 6Kg, to 924 escudos; the 12.5Kg, 1924.00 escudos and the 55Kg ones at 8466.00 escudos.

Thus, in the internal market, the prices of Butane, Gasoline, Oil, Normal Gasoil, Electricity Gasoil, Marine Gasoil, Fuel Oil 380 and Fuel Oil 180 increased by 5.92%, 7.26%, 3.61%, 2.95%, 3.08%, 3.22%, 5.24% and 5.07%, respectively. “ All in all, it corresponds to an average increase in fuel prices of 4.54%” , says ARME in a statement.

According to the same source, when compared with the same period (February 2022), the average change in fuel prices corresponds to an increase of 10.92% and, in relation to the average change over the current year, corresponds to an increase of 2.22%.

Oil quotes and rising prices

ARME points out that during the month of January there was some volatility in Brent oil prices on international markets, registering average increases of 2.89% (83.89 USD), when compared to prices in the month of December (81.53 USD) .

“ The main reasons for the rise in oil prices in January have to do with the reopening of China's borders and the prospect of growth in its economy above expectations, signaling the end of the 'Covid zero' policy and the increase in global oil demand, given that it is one of the main buyers of this raw material; with the forecast, by the Department of Energy of the United States of America (USA) and the Organization of Petroleum Exporting Countries, of an increase in global oil consumption, which could reach record levels in 2023, and being leveraged essentially by the growth of economic activity in India and China and, finally, with the devaluation of the US dollar, making oil cheaper for other countries and increasing its demand, given that its international quotation is denominated in this currency ”, argues ARME.

However, the same source reveals that this rise was attenuated, above all, by the maintenance of forecasts of global economic recession in 2023, mainly in the economies of the United States of America and Europe, and by the higher-than-expected increase in North American stocks oil.

It should be noted that the new maximum sale prices for the final consumer of regulated fuels are in effect between February 1st and 28th, 2023.