Unfortunately, historically high fuel prices, combined with the current economic downturn wherein consumer purchasing power is diminished, may spell further woes for the ordinary Mwananchi. As discussed previously on this column, the rise in fuel prices is likely to have a trickle-down effect on the cost of living experienced by the ordinary Mwananchi. Indeed, where fuel prices rise, it is expected that the costs of energy, transportation, consumer goods and services will similarly experience an untick. From a business perspective, increased costs of fuel will likely translate to reduced investments and plateaued growth on the back of increased business costs. An increase in the cost of fuel will have a direct impact on the cost of electricity, thereby increasing the cost of running energy-dependent machinery and equipment.
Source: The Star April 15, 2021 00:56 UTC