Senegal's energy subsidy costs projected to reach 729 billion FCFA by 2026

This upward revision is primarily due to the rising international oil prices, with a barrel of oil reaching 88 dollars on August 3, 2026, compared to the 64 dollars per barrel used for the initial budget calculation. In 2025, energy subsidies amounted to 412 billion FCFA. This budgetary commitment allows Senegal to maintain stable petroleum product prices, contrasting with the trend in the sub-region, such as in Côte d'Ivoire, where fuel prices increased on August 1, 2026.

The Senegalese government had previously lowered prices for super unleaded and diesel, as well as electricity tariffs for the lowest consumption bracket 0 to 150 kWh, to support the purchasing power of modest households. To manage the increased subsidy burden and underperforming state revenues, the government implemented budget cuts totaling 687.2 billion FCFA. These cuts include 19.8 billion FCFA from operational credits, 386.3 billion FCFA from internal investment credits, and 300.9 billion FCFA from externally funded investment expenses.

Priority expenditures, such as diplomatic missions, local government endowments, education, health, security, agricultural subsidies, and salaries, were exempted from these cuts.