HomeEconomyAlgeria's Strategic Shift: The Phased End of Diesel Dependence

Algeria’s Strategic Shift: The Phased End of Diesel Dependence

Since 2022, Algeria has been actively working to reduce its dependence on diesel. The government has enacted a series of decisions to curb the use of this fuel and encourage less polluting alternatives. This orientation is driven as much by economic pressure as it is by environmental necessity.

The first major measure arrived with the prohibition on importing used vehicles less than three years old equipped with diesel engines. Only gasoline, hybrid, and electric cars are now authorized for private citizens. This decision breaks with the country’s historical reliance on gasoil.

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The ban was then extended to new vehicles imported by dealerships. Sector specifications leave no margin for error: no diesel model can be commercialized through this channel. The goal is to progressively update the car fleet and reduce the prominence of diesel in the Algerian market.

Production and Imports: The Diesel Ban

The policy doesn’t stop at imports. Executive Decree No. 22-384 of November 17, 2022, formally prohibits the manufacture and importation of passenger cars equipped with diesel engines in Algeria. Future manufacturers setting up operations in the country must therefore focus on gasoline, hybrid, or electric powertrains.


Promoting Clean Public and Freight Transport

The government is also focusing on clean collective transport. In the 2026 finance bill, the state announced the creation of seven new cable car lines across as many provinces (wilayas). This initiative aims to reduce the use of diesel-powered buses and promote less polluting solutions.

In parallel, several programs for the electrification of railways are moving forward. Converting diesel trains to electricity not only reduces pollution but also cuts down on fuel consumption.

The government is also targeting freight transport. Last February, a new measure mandated the transfer of a maximum number of containers from the port of Bรฉjaรฏa to a dry port in Bordj Bou Arreridj. This decision decreases the reliance on heavy diesel trucks, which are responsible for a significant share of national fuel consumption.


Incentives for Electric Vehicles

Since 2023, the state has been introducing incentive measures for the purchase and production of electric vehicles (EVs). Discussions are ongoing with several Chinese manufacturers to launch the assembly of electric and hybrid cars in Algeria. This choice is intended to accelerate the emergence of a local EV market and further reduce diesel use.

A Turn Driven by Economics and Ecology

This strategic direction responds to two key imperatives:

  1. Economic: Algeria seeks to avoid the need to import diesel. National production has reached its capacity limit. Any increase in internal demand would force the country to buy fuel abroad, straining foreign currency reserves amidst fluctuating oil revenues. Reducing diesel consumption is thus a strategic necessity.
  2. Environmental: Decreasing the use of gasoil contributes to the fight against pollution. By limiting diesel, Algeria aims to align itself with global climate protection goals.

Thus, the reduction of diesel consumption is no longer just rhetoric. It is now part of a planned and implemented policy. The measures adopted in recent years trace a clear direction: less diesel, more electricity, and increased sustainable transport. Algeria is advancing, step by step, toward cleaner mobility and a more coherent energy model.

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