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January 4, 2026 | 3 months ago

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Fuel price adjustment: A measure aimed at covering production and distribution costs

ALGIERS - The Ministry of Hydrocarbons and Mines said in a statement on Friday that the fuel price adjustment, which came into effect on January 1, 2026, aims to guarantee the continuous supply of the domestic market and cover rising production and distribution costs, ensuring that the state continues to absorb the significant gap between the actual cost and the price at the pump.

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The ministry specified that this adjustment, which is part of the application of the laws and regulations in force, concerns the price of petrol, which rises from 45.62 DZD/litre to 47 DZD/L (+1.38 DZD), diesel, which will increase from DZD 29.01/litre to DZD 31/litre (+DZD 1.99), and LPG fuel, which will rise from DZD 9/litre to DA 12/litre (+DZD 3).


This carefully considered adjustment "aims to guarantee the continued supply of the domestic market and to cover rising production and distribution costs," explains the same source, emphasising that "the state continues to absorb the significant gap between the actual cost and the price at the pump."

The ministry also notes that "despite this adjustment, Sirghaz remains the most economical fuel in Algeria, with a price still four times lower than petrol, confirming the government's commitment to continuing to encourage this environmentally friendly and economical choice".

The new fuel prices do not reflect the actual cost of the product (extraction, refining, transport and distribution), says the ministry, adding that "the Treasury continues to bear most of the final price to preserve purchasing power and support economic activity".

The ministry stated that the primary objective of this price adjustment is to enable refining and distribution companies to maintain the operation of their facilities and ensure the continuous availability of fuel throughout the country, thereby avoiding any future disruptions in supply.

The revenue generated by this adjustment will be directly channelled into investment in the modernisation of service stations, the expansion of the retail network to bring it closer to citizens, and the development of storage and distribution activities, the same source adds.

The ministry further clarified in its statement that "this approach aims to strike a balance between the need to ensure continuity and quality of public service in this sector and the protection of consumers against fuel price fluctuations, which have not changed in Algeria since 2020 and remain among the lowest and most stable internationally.

January 4, 2026 | algeria-logo

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