Rising diesel prices are compounding operational costs for African businesses, piling pressure on freight transport, agricultural activity, construction, and industrial operations.

Unlike petrol, which is used primarily in private vehicles and passenger transport, diesel is critical for freight haulage, agricultural machinery, heavy construction equipment, and generators relied upon by businesses across the continent.

Increases in diesel prices therefore ripple across multiple sectors of the economy, forcing companies to choose between absorbing additional costs — compressing profit margins — or passing them on to consumers already struggling with the cost of living.

According to a report published in October by the United Nations Conference on Trade and Development (UNCTAD), diesel prices in Nigeria surged 82.7% between 23 February and 31 August 2026, the largest increase recorded among the countries and territories covered by the study.

The spike has made it increasingly difficult for Nigerian businesses to control operational costs and has contributed to heightened inflationary pressures in the country.

The problem, however, is not confined to Nigeria. In Kenya, the diesel price rose by 9.90 Kenyan shillings per litre on 15 October, bringing the pump price in Nairobi to 227.76 shillings, according to Citizen Digital.

In South Africa, prices were also revised upward on 7 October, with increases of between 2.84 and 3.24 rand per litre depending on the grade of diesel, according to the South African government.

These price movements underscore the mounting pressure on transport and production costs across African economies, with potential knock-on effects on the prices of goods and services.

Based on data from GlobalPetrolPrices, the following represents the ranking of African countries with the highest diesel prices in October this year.

Compared with September's list, when the global average diesel price stood at US$1.66 per litre, the figure edged up slightly to US$1.67 per litre in October.

During the period under review, fuel prices declined marginally in Malawi, Zimbabwe, and Seychelles, while modest increases were recorded in the Central African Republic, Lesotho, and South Africa.

In Sierra Leone, Mozambique, and Rwanda, prices remained unchanged. Cabo Verde entered the ranking of Africa's ten most expensive diesel markets, replacing Eswatini.

Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=557707