Government ministers in Senegal are facing a travel ban as the country grapples with the soaring cost of oil due to the ongoing conflict in Iran. The Prime Minister, Ousmane Sonko, announced the measure during a youth rally on Friday, emphasizing the need to conserve resources amidst the rising prices. Sonko himself has postponed his planned trips to Niger and Spain, illustrating the strictness of the new restrictions.
The current price of a barrel of oil is approaching double the amount that had been budgeted for, according to Sonko. In response, the mines minister is expected to unveil further measures aimed at curbing government spending in the coming week. This decision comes as part of Senegal’s latest response to the global oil price surge, which has prompted other countries on the continent to reduce fuel levies and ration electricity.
Despite having a nascent oil and gas industry, Senegal heavily relies on fuel imports. Last year, the International Monetary Fund described the country’s economy as “robust, “with a growth rate of nearly 8% and low inflation. However, Senegal’s public debt stands at over 130% of its total annual economic size, a burden that Prime Minister Sonko has attributed to the previous government. This has made managing the oil price situation even more challenging for his administration.
Elsewhere on the African continent, South Africa has reduced the tax on petrol in an attempt to limit the increase in fuel costs. In Ethiopia, fuel shortages have prompted some government institutions to send employees on annual leave. South Sudan has initiated electricity rationing in Juba, while Zimbabwe is increasing the ethanol content in its petrol.
The closure of the Strait of Hormuz, due to the US — Israeli conflict in Iran, has also restricted the global supply of fertiliser, with an estimated 30% of it passing through the Gulf. The International Rescue Committee has warned that this situation poses a significant threat to food security, especially in East Africa, which heavily relies on fertiliser imports from the Middle East.
Source: BBC Africa
