The Gambia government spent D827.59 million on petrol and diesel subsidies between March and September 2026. This information was revealed in the 2027 budget speech delivered by the Minister of Finance and Economic Affairs, Seedy Keita, at the National Assembly. The expenditure was aimed at cushioning consumers against rising international fuel prices following tensions in the Middle East, which affected the global economy.
Of the total amount, D42.46 million went towards petrol subsidies, while D785.13 million was spent on diesel subsidies, accounting for nearly 95 per cent of the total. The significant allocation towards diesel subsidies reflects the government's efforts to mitigate the impact of rising fuel costs on consumers. Despite the subsidies, domestic retail prices for petrol and diesel increased by 33.1 per cent and 41.8 per cent, respectively, between March and September 2026.
The government said it had taken measures to ensure a reliable fuel supply by importing sufficient quantities to meet domestic demand. This move was crucial in maintaining a stable fuel market and preventing shortages. The subsidies helped keep fuel prices below the levels they would have reached if increases in international prices had been fully passed on to consumers.
According to the budget speech, the subsidies had a significant impact on the government's finances. However, the government continued to monitor developments in the global economy, with President Adama Barrow taking measures to address the challenges and protect citizens' welfare. The government is also targeting an increase in the tax-to-GDP ratio to 13.1 per cent in 2026.
Despite revenue losses associated with fuel subsidies amid elevated international oil prices, the tax-to-GDP ratio is projected to rise further to 13.5 per cent in 2027. This increase will be supported by measures to improve revenue collection and reforms under the 2026–2030 Domestic Resource Mobilisation Strategy. The government is working to enhance its revenue mobilisation efforts.
On expenditure, the government said it continued to prioritise infrastructure development despite fiscal pressures. It reported progress on major road projects, including the Brufut-Madiana-Banyaka, Bani-Salikenie-Njaba-Kunda, Wullingkama-Brufut Highway, Kololi Tavern-Bijilo, Gunjur and Sanyang Seaside roads. The government said the roads were inaugurated by President Barrow during the second and third quarters of 2026.
The budget speech did not provide a breakdown of the fuel subsidy expenditure by month or indicate how much the government expects to spend on subsidies in the coming months. The government will continue to navigate the challenges posed by rising international fuel prices and ensure a stable fuel market for consumers.
Key points
- The Gambia government spent D827.59 million on fuel subsidies between March and September 2026.
- The subsidies helped keep fuel prices below the levels they would have reached if increases in international prices had been fully passed on to consumers.
- The government is targeting an increase in the tax-to-GDP ratio to 13.1 per cent in 2026.
