The strain placed on transportation networks is one of the most obvious and apparent impacts of high fuel prices. A higher petrol price raises operating expenses for consumers and companies alike, from everyday commutes to commodities transportation.
As a result, prices for consumer goods and services typically rise, making it more difficult for residents to maintain their quality of life.
Additionally, industries reliant on energy, such as manufacturing face a significant blow when fuel costs are elevated. The increased cost of production and transportation can hinder the competitiveness of local industries in the global market, and as such place make the lives of citizens very inconvenient.
Unfortunately, this is the reality of several African regions currently dealing with high fuel costs. While some of the said economies still function optimally regardless of the high fuel price, others are not as fortunate.
High fuel costs in regions like Kenya have impacted the economy to the point where Kenyans at some point had to cross to Tanzania to access cheaper fuels.
While the Kenyan economy is strong enough to absorb the shock, there is no denying how much smoother day-to-day productivity can be in the country if fuel prices are significantly lower.
Source: BI
