DRC Govt’s Fuel Subsidies Keep Prices Low but Rack Up Significant Debt
Deputy Prime Minister and Minister of National Economy, Daniel Mukoko Samba, disclosed on Monday during a joint press conference with Minister of Communication and Media, Patrick Muyaya, that the Congolese government is heavily subsidizing petroleum product prices to keep them affordable for the population.
“Currently, a liter of gasoline costs 3,475 Congolese francs and diesel 3,465 francs. However, when you purchase a liter of fuel, you’re only paying a fraction of its actual cost. The government covers the rest,” said Mukoko Samba.
He explained that the subsidy ranges from 2,100 to 2,300 francs per liter. Without this government intervention, the true cost of fuel would be between 5,300 and 5,400 francs per liter.
The minister also highlighted that this subsidy has led to a significant debt to oil companies. “By the end of December 2023, the government owed around $285 million to oil distributors. If this trend continues, the debt could reach nearly $400 million by the end of June 2024,” he noted.
This debt represents the amount the government must reimburse to petroleum product distributors to cover the shortfall caused by the subsidy, ensuring fuel remains available at stations across the country.
This revelation comes as the DRC grapples with escalating economic challenges, making the management of subsidies an increasingly critical issue for the Congolese government.
