Fuel shortage in Guinea: an alarming situation affects the economy and purchasing power
Since the explosion of the main hydrocarbon depot in Guinea, the country has been facing a serious fuel shortage. The humanitarian consequences are dramatic, with 24 people dead and more than 450 injured. But the economic repercussions are also very significant, with an increase in fuel prices which impacts the purchasing power of Guineans.
Rising fuel rates have led to a surge in transportation prices, which has directly affected the cost of goods and commodities sold in the markets. Guinean households are already feeling the effects of this increase on their purchasing power.
Gasoline needs are particularly important in Guinea, as the majority of vehicles in the country run on this fuel. Gas stations are invaded by endless queues, and the distribution of gasoline is now limited to 25 liters for cars and 5 liters for two-wheelers and tricycles. However, this quantity is far from enough in a country where public transport is limited.
In addition to the problems for individuals, the fuel shortage also impacts many economic sectors, notably the mining industry which is one of the main foreign exchange earners for the country. Some factories had to suspend their activities, such as the Dinguiraye Mining Company (SMD), a subsidiary of the Russian gold mining company Nordgold, which was forced to put its staff on technical unemployment due to lack of fuel. This situation risks having significant repercussions on the Guinean economy.
Faced with this crisis, the Guinean government was forced to take emergency measures, in particular by seeking help from mining companies to requisition their fuel stocks, in particular heavy fuel oil (HFO) necessary for electricity production. . Additionally, fuel delivery contracts have been signed with neighboring countries, such as Ivory Coast, to ensure a regular supply of fuel.
This fuel shortage crisis promises to be a major challenge for Guinea. Public services and the private sector are currently at a standstill, and it will take time to return to normal. In the meantime, the Guinean population continues to suffer from the consequences of this shortage, both on a humanitarian level and on an economic level.