The government of Cabo Verde has announced that it will maintain the price of gas butane at its current level in November. This decision was made during a Council of Ministers meeting on October 27. The move aims to prevent a predicted 38.8% increase in the calculated price of gas butane from being passed on to consumers. As a result, a 12.5-kilogram gas bottle will remain capped at a maximum of 1,868 escudos.
The government will assume the difference between the calculated price and the capped price, benefiting consumers and businesses, particularly in the food industry. This measure will apply to all packaging and bulk sales and will be in effect until December 2026, subject to review. If the monthly calculation results in a lower price, the reduction will be reflected in the amount paid by consumers.
In addition to maintaining the gas price, the government forecasts a slight decrease in gasoline and diesel prices for other consumers in November. However, these projections are subject to confirmation by the Regulatory Agency for the Economy (ARME). The government also expects an increase in petroleum and fuel oil prices.
To mitigate the impact of rising fuel costs, the government plans to channel additional revenue collected in July, August, and September into a protection mechanism. This mechanism can be activated if fuel price trends reverse and new increases are predicted. The government has also extended support for electricity tariffs until December 31, 2026, for EDEC and Águas e Energia da Boa Vista consumers.
The Council of Ministers also approved a monthly support of 10,000 escudos per artisanal fishing vessel, provided through ten fuel coupons of 1,000 escudos each. This measure, funded by the Autonomous Fisheries Fund, aims to reduce operational costs and support the continuity of fishing activities.
The main opposition party, MpD, has criticized the government's response to rising fuel costs, accusing it of failing to adequately protect families and certain sectors. MpD's vice-president, Celso Ribeiro, stated that families are already feeling the effects of the increases, which have risen by 34 escudos per liter for gasoline and 53 escudos per liter for diesel since June.
The MpD has proposed alternative measures, including a fuel allowance for taxi and hiace drivers, a fishing allowance, and a family gas allowance. The party argues that these measures can be financed using additional revenue generated by the fuel price increases.
Key points
- The government of Cabo Verde maintains the price of gas butane while forecasting a drop in other fuels.
- The MpD criticizes the government's response to rising fuel costs.
- The government approves support for artisanal fishing vessels.
