The price of diesel used to generate electricity in Cape Verde rose 40.9% between July and October 2026, while road diesel rose 36% and gasoline increased 21.7%, the fiscal council CFP said in its report on the forecasts behind the draft 2027 budget, Expresso das Ilhas reported. The increases could push up transport, production and energy costs, the council said.
Analysis: Diesel used by power generators increased almost twice as fast as gasoline, raising costs for electricity producers such as Electra. Because regulator ARME sets tariffs, higher generation costs could put pressure on electricity prices or public subsidies. The draft 2027 budget includes 1.2bn CVE (€11.0mn) for fuel support and a social electricity tariff, though the allocation is not solely for generation. Hotels, desalination operators and manufacturers are exposed to any increase in power bills. ARME's next fuel price schedule, expected in November, may show whether fuel costs continue rising.
Source: Expresso das Ilhas, Expresso das Ilhas, October 25, 2026 (print edition no. 1299, October 21), reporting the Conselho das Finanças Públicas (CFP) report on the macroeconomic forecasts underlying the 2027 State Budget proposal, July-October 2026; Ministério das Finanças de Cabo Verde, Ministério das Finanças, Relatório do Orçamento do Estado 2027 (proposal), 2027; Forbes África Lusófona / Lusa, Forbes África Lusófona (Lusa), citing ARME price tables, October 2026