A new report has identified African countries where motorists and businesses currently enjoy the lowest fuel costs, as global oil dynamics and currency performance continue to shape domestic pump prices.
The ranking, compiled from Global PetrolPrices data and reported by Business Insider Africa, shows that cheaper fuel is easing financial pressure on households, firms, and governments across several parts of the continent.
Analysts say reduced fuel costs are helping to curb inflation, improve consumer spending, and influence energy policy direction in some economies. Lower transport expenses have also reduced the cost of goods, especially items that depend heavily on road logistics.
Economic Impact Of Lower Fuel Prices
Sustained fuel price reductions are providing immediate relief in many countries. Transport fares have declined in some areas. Food prices and basic commodities have also recorded moderation where distribution relies on trucking networks.
The development has also shaped broader economic planning. Governments are adjusting energy strategies as they respond to fluctuations in global oil markets.
South Africa Records Notable Decline
South Africa
South Africa stands out among countries that posted significant fuel price reductions. The country recorded a second straight month of declines, offering some economic relief to consumers.
Petrol prices are projected to drop by about 65 cents per litre. Diesel prices are expected to reduce by between 50 and 57 cents per litre.
The reduction followed a sustained fall in international refined product prices, supported by rising global stockpiles. This trend persisted despite crude oil price increases during the review period.
Currency strength also played a role. The South African rand appreciated from R16.85 to R16.31 against the U.S. dollar in January. This appreciation reduced import costs and lowered the Basic Fuel Price for petrol, diesel, and illuminating paraffin.
Kenya’s Policy Shift On Energy
Kenya
Kenya presents a different but related case. Although the country depends on imported fuel, authorities have introduced tax incentives for electric vehicle components and charging infrastructure.
The move aims to cut fossil fuel dependence and reduce emissions. The country’s electric vehicle market has expanded rapidly. Registered EVs rose from 796 units in 2022 to 24,754 units, reflecting growing adoption.
Countries With The Lowest Fuel Prices
According to the February 2026 data, Libya and Liberia recorded price drops compared to the previous month, when the global average stood at $1.28 per litre versus $1.30.
A slight increase was recorded in Algeria, Egypt, Nigeria, Ethiopia, Tunisia, and Niger. Angola and Sudan maintained unchanged price levels during the period under review.
Broader Outlook
Energy economists note that low fuel prices often coexist with evolving energy reforms. While the immediate benefits include cheaper transport and lower inflation, long-term policy responses may focus on diversification and energy sustainability.
The report concludes that fuel pricing trends across Africa will continue to depend on global oil movements, exchange rate performance, and domestic fiscal policies.
