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Somalia’s Economic Woes Intensify Amid Spiraling Fuel Costs

Mogadishu’s businesses are facing a severe crisis due to the ripple effects of the Iran war on global energy markets, which have led to a drastic hike in oil prices. The sharp increase in fuel costs has left residents and entrepreneurs alike reeling, with many struggling to cope with the escalating expenses.

Abdullah Yusuf, a tuk-tuk driver, shared his concerns with Al Jazeera, citing a staggering rise in fuel prices from approximately 62-65 cents per litre to a whopping $1.50. “It’s been an uphill battle for us to stay afloat,” he said, adding that his customers are also feeling the pinch.

Somalia’s reliance on imported fuel makes it highly susceptible to fluctuations in global energy prices. The resulting price surge has a far-reaching impact, particularly on aid distribution efforts, where millions of internally displaced individuals rely on timely assistance. Ismael Abdullahi Siyad, a local fuel supplier, expressed his unease despite having a six-month reserve stockpile. “The situation is precarious, and we risk being severely affected, especially during the dry season when fuel demand is at its peak,” Siyad warned.

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