By: Mustafe Jirde
HARGEISA–The Somaliland government implemented fixed fuel prices on Wednesday after a series of meetings between the Ministry of Commerce, Marodi-jeh regional authority, and fuel business traders. The decision to implement a fuel price cap came after discussions with fuel traders revealed a significant increase in fuel prices, particularly for fuel imported from overseas. Under the agreement, one liter of petrol will cost around 12,500 Somaliland Shillings, while a liter of diesel will cost around 10,500 Somaliland Shillings. The Marodi-Jeh regional government stated that this decision reflects the difficult circumstances surrounding the acquisition of fuel. They also disclosed that the scarcity and price hike were linked to the ongoing conflict between the US, Israel, and Iran in the Middle East. The government has announced that fuel prices will be reviewed on a weekly basis to align with global changes in fuel prices. Fuel importers have confirmed that the new fuel price cap is a result of the real expenses incurred in importing fuel from overseas, which have greatly increased due to the rising price per barrel. They have stated that this decision is a balance between respecting the interests of consumers and ensuring smooth trade. The skyrocketing fuel prices can be directly attributed to the political tensions in the Middle East, particularly the ongoing conflict between the US, Israel, and Iran. This tension has disrupted food, fuel, and production, leading to record-high oil prices. Additionally, the conflict has raised security concerns in strategic fuel importing routes, such as the Strait of Hormuz, which has affected countries heavily reliant on imported fuel. Finally, the government and traders have assured that they will work together to monitor the situation and take measures to stabilize fuel prices in local markets in Somaliland.
