Fuel Price Shock: Why developing economies are paying the most at the pump

What the report says

The Independent Uganda reports that a new UN Conference on Trade and Development analysis says developing economies are absorbing a much larger share of the global fuel price shock linked to disruptions in shipping through the Strait of Hormuz. The report says higher international petroleum prices are feeding inflation, squeezing household budgets and adding strain to public finances, especially in countries that rely heavily on imported fuel and have limited room to absorb external shocks.

According to the UNCTAD findings cited by the publisher, global diesel prices rose sharply between late February and October 2026, while gasoline, shipping fuel and jet fuel also increased. The article says Africa saw an especially large jump in jet fuel costs. UNCTAD attributes the pressure to reduced vessel availability, longer routes, constrained refining capacity and higher shipping costs, with impacts felt across global supply chains rather than only in conflict-affected states.

The report also compares the burden across income groups, finding that the cost impact of buying 40 litres of diesel is far higher in low-income countries than in richer ones. The article cites large domestic fuel price increases in several developing economies, including Tanzania, Ethiopia, Malawi, Myanmar and Rwanda. It adds that fuel is a key input for transport, farming, manufacturing and power generation, so the shock can quickly raise prices for food and other essentials.

The Independent Uganda says the issue is also visible in Uganda, where diesel and petrol prices have climbed alongside a weakening shilling and rising inflation. The article says Parliament has raised concerns about the cost of doing business and living, underscoring how imported energy shocks can deepen domestic economic pressure.