Mozambique, one of the world’s poorest countries, has increased diesel prices by 46 per cent as African governments adjust regulated fuel rates to reflect rising global costs driven by the war in Iran.

Ethiopia, The Gambia, and Zambia have also raised pump prices by as much as 26 per cent in the past week.

Across the continent, governments that control fuel pricing are increasingly being compelled to pass on higher costs despite subsidies and temporary tax cuts aimed at easing the burden.

Mozambique had previously stated that existing fuel reserves would last through April and indicated that price adjustments would be delayed until then.

The government expected the buffer to hold before any changes were made, according to the state-owned Agência de Informação de Moçambique, citing President Daniel Chapo at the time.

Recent post-election unrest has made the Mozambican government cautious about increasing fuel prices.

However, shortages at filling stations and long queues of motorists struggling to access fuel ultimately pressured the regulator to act.

Mozambique’s energy regulator, ARENE, announced on Wednesday that diesel prices would rise to 116.25 meticais ($1.83) per litre from 79.88 meticais, effective May 7.

Fuel retailers have been pushing for higher prices, arguing that current levels are “not financially sustainable,” according to Maputo-based economist Eduardo Sengo, who noted that some filling stations had also withheld supply in anticipation of an increase.

Governments across the region have been slow to adjust pump prices, with Angola leaving rates unchanged since last year, while Mauritius only made its first increase since 2023 last month.