, in the third quarter of 2023, the Energy Price Index saw a 9% rise, primarily driven by an 11% increase in oil prices, making up a significant portion of nearly 80% of the index. The average price of Brent crude oil in 2023 was $84 per barrel. The Brent price surged by 6% at the onset of the recent Middle Eastern conflict. Although a decrease from nearly $100 per barrel in 2022, this global rise in oil prices directly impacted fuel costs in Africa.
Many African countries also enacted policy changes that further impacted fuel prices. For example, in May 2023, Nigeria, a major African oil producer, ended its long-standing fuel subsidy program. This policy change and rising global oil prices resulted in a significant spike in fuel costs for Nigerian consumers. This trend, particularly evident in the biggest African economies, pushed food and energy prices to the forefront of policy concerns. Here’s why.