Developing countries across Asia, Africa and the Middle East are facing a sharp rise in energy costs as the war involving the United States, Israel and Iran disrupts supply routes and damages oil and gas facilities in the Gulf. The pressure is falling hardest on economies that rely heavily on imported fuel and have little room in their budgets to absorb higher prices. Reports Aljazeera.com.
Pakistan, Bangladesh and Sri Lanka are among the most vulnerable. Pakistan, which imports most of its energy from the Gulf, has closed schools, shortened the government workweek and reduced fuel use by public employees as reserves shrink. Bangladesh has introduced fuel rationing, but some petrol stations have still run dry. In Sri Lanka, authorities declared a weekly public holiday and launched a fuel pass system to conserve supplies.
Egypt is also under strain as one of the region’s largest energy importers. The government has ordered earlier closing times for malls, shops and cafes, reduced public lighting and raised the prices of petrol, diesel and cooking gas by 15 to 22 percent. President Abdel Fattah el-Sisi said the increases were needed to prevent deeper economic damage.
Analysts warn that if the conflict continues, many developing economies could face faster inflation, weaker currencies and greater pressure on state finances. For countries already burdened by debt, the energy shock risks slowing economic activity and worsening living costs for millions of people.
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