June 13, 2024
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World Experiencing a Massive Surge in Energy and Food Prices

Energy Afrique reported that a data technology company called StatiSense indicated that, except for Iran and Venezuela, all other member countries have raised oil prices from August 2022 to the same period in 2023. In the case of Iran and Venezuela, the prices were subsidized from N212 to N21.6 and from N9 to N3, respectively.

Updates from GlobalPetrolPrices.com on September 4, 2023, revealed that Nigeria has witnessed the highest increase during this period, with prices surging by over 254.6%, rising from N174 (in 2022) to the current N617 per liter. This increase is attributed to the removal of fuel subsidies by President Bola Ahmed Tinubu on May 29, 2023. However, Gabon holds the record as the member country with the highest petrol price, currently at N770.

The United States has experienced a significant increase in prices, especially in the cost of gasoline. This surge could potentially influence the Federal Reserve’s decision on interest rates next Wednesday, according to Reuters.

The Consumer Price Index (CPI), which measures the monthly change in prices paid by U.S. consumers, rose by 0.6% in August. This marks the largest gain since June 2022, following two consecutive monthly increases of 0.2%, as reported by economists surveyed by Reuters.

Gasoline prices in August also saw an increase, reaching $3.984 per gallon, according to data from the U.S. Energy Information Administration. In July 2023, the price of gasoline was $3.676 per gallon. Sam Bullard, a senior economist at Wells Fargo in Charlotte, North Carolina, commented, “It’s going to be a mixed picture, with headline inflation picking up due to higher gasoline prices, while core inflation remains contained.”

In addition to energy, food prices in the United States have continued to rise at a moderate pace. The CPI increased from 3.2% in July to 3.6%. This marks the second consecutive month of rising inflation in the current year, following a downward trend from a peak of 9.1% in June 2022.

Reuters notes, “The core CPI, excluding food and energy, is forecast to have increased 0.2% for a third straight month amid declining prices for used cars and trucks. Though rents continued to increase, the trend is cooling, and a further slowdown is expected as more apartment buildings come on the market.”

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