Barely a month after the hiking of fuel prices, there is a likelihood that fuel prices can go up again.
According to an analyst on global affairs, the likelihood of fuel prices spiking remain high on the global scale and Malawi cannot survive cushioning against such a spike for a long time.
The analyst Mike Sogoja said that the current impasse involving USA and Iran has the likelihood of ending up into a fully-fledged economic war with oil being the worst hit commodity.
“We need to watch the events in the Middle East with a critical eye and keen interest, it is dangerous such that it is hard to think that oil prices will be the same,” he said.
The analyst indicated that the threat of sanctions over major oil producers in the Middle East included Iran and Iraq would bite hard.
“There have already been upward adjustments in global oil prices since the killing of Souleiman, however we are being cushioned but I do not think that it can be for long if the state of affairs in the Middle East remain the same,” he said.
USA and Iran are in a confrontation after the former killed an army general of the latter in Afghanistan in a move that has been condemned worldwide.
In reaction to the move, the Afghan Parliament voted to kick out American soldiers from their country; a move that has met the threat of US President Donald Trump to slap them with heavy sanctions.
Malawi hiked its oil prices in December 2019.
