DRC Oil Tax Reform Boosts Petroleum Revenues by Over 1,700%, Easing Pressure on Public Finances
The Democratic Republic of Congo’s reform of oil-related tax expenditures is beginning to deliver measurable benefits for public finances, with official data showing petroleum revenues rising by more than 1,700% following the introduction of coordinated fiscal and regulatory measures.
The reform was launched against a backdrop of rapidly rising oil tax expenditures, which reached US$1.6 billion in 2022 before easing to US$1.1 billion in 2023. Over the two-year period, these expenditures accounted for nearly 15% of the State’s current revenue, raising concerns about fiscal sustainability and budgetary balance.
In response, the Government initiated a comprehensive overhaul of the system in 2024. The reform is anchored in Article 22 of the Finance Law for the 2025 fiscal year and was operationalised through an interministerial decree signed on 2 May 2025 by the Ministries of National Economy, Finance and Hydrocarbons.
The decree redefined the taxation of road and aviation fuels consumed by mining companies and their subcontractors, formally excluding them from the State-funded fuel subsidy scheme.
This marked a decisive shift toward reducing implicit subsidies and curbing revenue leakages.
Implementation began at the end of July 2025 and was reinforced by complementary measures, including the suspension of tax exemptions and deferred payment arrangements on petroleum product imports, as well as tighter on-the-ground enforcement led by the Ministry of Finance.
Data from the General Directorate of Customs and Excise (DGDA) highlight the scale of the impact. Between January and July 2025, prior to implementation, oil revenues averaged about 4.4 billion Congolese francs (CDF) per month. From August to December 2025, the monthly average surged to more than 78.5 billion CDF.
Additional gains were supported by expanded molecular marking of petroleum products and intensified inspections by the Brigade for the Fight Against Fraud and Petroleum Smuggling under the Ministry of Hydrocarbons, which significantly reduced illicit practices and secured revenues.
By the end of December 2025, the DGDA had mobilised 6,848 billion CDF, exceeding the State Treasury Plan forecast of 6,280 billion CDF.
This represents an achievement rate of 109%, reflecting a marked improvement in customs performance and revenue collection.
Government officials say the results underscore the effectiveness of coordinated public action across institutions, as well as the importance of fiscal discipline, rationalised tax expenditures and stronger control mechanisms in restoring sustainable public finances.
Looking ahead, the authorities plan to build on these gains by consolidating the reforms, broadening the tax base and maintaining a balance between economic competitiveness and domestic revenue mobilisation.
