The cost of diesel has a direct impact on manufacturing costs, consumer pricing, and the overall competitiveness of firms
Nigeria, one of Africa’s largest oil producers, provides a case study for both the challenges and potential benefits of managing diesel costs.
In October 2025, the Nigerian government approved a 15% import levy on gasoline and diesel to protect multibillion-dollar home refineries, including Africa’s largest, the Dangote Refinery, which produces 650,000 barrels per day.
The measure is part of broader budgetary reforms aimed at reducing reliance on imported fuels and stabilizing the downstream petroleum markets.
While the import duty may initially increase fuel prices at the pump, the long-term goal is to reduce and stabilize fuel costs through domestic manufacturing.
By minimizing reliance on imported products, which frequently flood the market at prices lower than cost recovery, Nigeria can develop a market in which diesel prices reflect actual production costs rather than global volatility.
Nigeria’s strategy provides an important lesson for the rest of Africa: energy self-sufficiency is vital to managing diesel costs.
African countries may foster economic progress and social welfare by investing in domestic refining capacity and reducing reliance on imported petroleum.
In essence, low diesel prices are more than a matter of convenience; they are a powerful driver of economic resilience, competitiveness, and prosperity across the continent.
Nigeria’s ongoing energy reforms demonstrate how well-designed policies may leverage local production to deliver these benefits, serving as a model for other African countries looking to stabilize fuel costs and boost their economies.
With that said, here are the African countries with the lowest diesel cost in October, according to data from Global Petrolprices.
Compared to the list last month, when the global average price of diesel was 1.23 U.S. dollars per liter, as opposed to $1.24 per liter this month, diesel prices for Libya increased slightly.
While diesel prices for Egypt, Nigeria, Tunisia, Ethiopia, and Liberia reduced marginally.
Diesel prices for Algeria, Angola, and Sudan remained the same, as Madagascar replaced Gabon on the list for this month.
