The sharp rise in global oil prices sparked by the Iran war has had an uneven impact in Francophone West Africa, with some countries’ fuel prices double the level of their neighbors.
Senegal, the second-largest economy in the West African Economic and Monetary Union, hiked its prices this month, reaching $1.70 per liter of fuel. In Niger, fuel prices largely remain at $0.89.
The IMF had warned of “uneven exposure” across the bloc, whose eight members share a common currency and some economic policy.
Senegal, which faces tight budgetary constraints due to ballooning debt, has spent nearly all of its full-year allocation for fuel subsidies already. Meanwhile, Côte d’Ivoire, which makes up more than a third of the group’s economic heft, has seen two price jumps over the last three months to $1.61. Togo has also held the line like Niger. Niamey has been cushioned by its small domestic refining capacity, while Lomé was one of the first African nations to buy refined fuel from Nigeria’s Dangote refinery in March.