Africa leads the trend towards fuel subsidies removal

Africa leads the trend towards fuel subsidies removal

The recent spate of fuel subsidy reductions in Africa could pave the way for a more efficient global refined products market and encourage much-needed investment in the downstream sector in Africa, say analysts.

Last month, Nigeria became the latest African nation to reduce subsidies, but was forced to renege on a full subsidy removal following mass protests. The $7 billion subsidy removal would have lifted pump prices from 65 naira to 141 naira per litre (L). The subsequent partial removal puts