Africa fuel shortages prompts work from home calls

Governments, individuals and companies are now scratching their heads over how to navigate the current skyrocketing fuel prices amid global shortages.

African countries, most of which heavily rely on fuel imports, are particularly hard hit.

What’s the way forward? Well, one key possible solution some are offering is that people should resort to working from home.

You remember how it was during the Covid-19 pandemic, especially between 2020 and 2021? That’s the kind of arrangement people like Aliko Dangote, Africa’s richest person, think African countries could adopt to cushion the effects of the global oil crisis sparked by the ongoing tensions in the Middle East.

Dangote told journalists in Lagos on Monday that although working from home could mitigate the effects, the situation could be more difficult for low-income earners and those engaged in menial jobs in the informal sector.

“I pray, and we all need to pray that this thing de-escalates. If it doesn't de-escalate, you know, normally we in Africa, we don't have any reserves in terms of savings or in terms of these things. So, people normally go out and look for money for the next day or for the even same day, some of them. If they don't work that day, they won't eat,” he said.

Shortages and price hikes

The worldwide fuel crisis is triggered by Iran’s restriction of transportation through the Strait of Hormuz after the country was attacked by the US and Israel. The Strait of Hormuz handles about 20% of global oil and Liquefied Natural Gas trade, and its disruption has caused global shortages and price hikes.

For example, in Nigeria and Ethiopia, Africa's two most populous countries, petrol prices have increased by about 50% in recent weeks, potentially affecting prices of other commodities.

Experts suggest working from home to save fuel and transport costs and some countries in Asia have already started implementing such measures.

The International Energy Agency supports this, citing possible 20% reductions in fuel consumption for individual drivers as well as national decease in fuel usage and encourages the use of public transport instead of private vehicles.

However, sceptics argue that working from home causes social isolation, blurs boundaries between work and personal life, and poses technical risks.

Overall, analysts advise boosting local oil refining in Africa and broader economic development as a long-term solution to mitigate the impact of crises like this.