The Multisectoral Economic Regulatory Authority (ARME) has announced its latest adjustments to fuel prices in Cape Verde, set to take effect on January 1, 2025. The revised pricing reflects an average increase of 1.23% for January, though specific variations are noted across different fuel products. These changes highlight the dynamic nature of the global energy market and its local implications.
Gasoline now costs 131.40 escudos per liter, equivalent to approximately 1.19 euros, marking a notable rise for motorists and transport operators. Normal diesel has similarly increased, reaching 118.90 escudos per liter, or about 1.08 euros. These increases may lead to higher transportation and logistical costs, impacting consumer prices across various sectors.
Contrasting with these upticks, certain fuels recorded reductions. Diesel used for electricity generation has decreased slightly to 103.20 escudos per liter, approximately 94 euro cents. Marine diesel followed a similar trend, dropping to 90.90 escudos per liter, or about 83 euro cents. These reductions could benefit sectors reliant on these specific fuels, such as maritime activities and electricity production, potentially offsetting some of the broader economic impacts.
Meanwhile, butane gas prices have risen modestly by 1.13%. A standard 12.5-kilogram cylinder is now priced at 1,897 escudos, equivalent to 17.16 euros. This increase is likely to affect household budgets, as butane gas remains a primary energy source for cooking and heating in many Cape Verdean homes.
Despite the monthly increases, ARME emphasized that fuel prices experienced an average annual decline of 0.69% compared to the previous year. This long-term reduction suggests that while short-term fluctuations occur due to market dynamics, the overall trend reflects stability and perhaps improvements in procurement strategies or favorable international price movements.
The newly adjusted prices are set to remain in place until January 31, 2025. ARME will continue to employ its monthly indexation mechanism to ensure pricing reflects real-time market conditions and broader economic factors. This mechanism allows for responsiveness to global oil price trends and exchange rate fluctuations, ensuring a balance between market realities and local affordability.