Fuel prices in the country have increased sharply, reaching 458.40 per litre after the latest rise on Thursday. This surge has made fuel one of the least affordable in the world when compared to people’s income levels.
The increase in prices has added extra pressure on consumers, as many people are already struggling with rising living costs.
While fuel prices are high globally, the real concern is how much people earn compared to how much they have to pay for fuel. In this case, purchasing power has not kept up with the increasing cost of energy.
According to comparisons, the country is now ranked as the second most fuel-unaffordable in the world. Only Ethiopia ranks lower in terms of affordability.
In Ethiopia, average daily income is around $1.50, while petrol prices range between $1.40 and $1.80 per litre. This shows how difficult it is for people in both countries to manage fuel expenses.
The situation highlights a growing gap between income and fuel costs. For many households, this means spending a larger portion of their income on transportation and daily travel. It also affects businesses, as higher fuel prices increase operating costs, which can lead to higher prices for goods and services.
Experts warn that if this trend continues, it could put more strain on the economy and reduce overall spending power. People may be forced to cut down on other essential needs to manage fuel expenses.
