Global unrest over soaring fuel prices and increasing living expenses, manifested in over 90 nations through concerted demonstrations
Global Fuel Price Protests: A Cascade of Unrest
The world is currently grappling with a wave of fuel price protests, a phenomenon primarily triggered by government decisions to raise fuel prices as part of subsidy cuts. These measures are aimed at reducing fiscal pressures and stabilizing public finances.
In Angola, the removal of fuel subsidies, which accounted for up to 4% of the country’s GDP, led to violent protests. The unrest, which began in 2023, involved minibus taxi associations and the wider public, resulting in at least 22 deaths, nearly 200 injuries, over 1,200 arrests, extensive looting, and property damage across multiple provinces, including the capital Luanda.
The causes of these protests are multifaceted. Governments, such as Angola's, are under pressure to meet international financial expectations, including those set by the IMF. Rising fuel prices also increase transportation costs and living expenses, disproportionately affecting lower-income populations who rely on public transit. Moreover, Angola's paradox of being an oil producer yet facing high domestic fuel prices due to inadequate refinery capacity and reliance on expensive imports exacerbates the problem.
The impacts of these protests are far-reaching. They lead to violent clashes, disruptions of public transport and fuel supply infrastructure, economic strain from increased transportation costs and inflationary pressures, political and social instability, and investor attention on subsidy reform as a sign of structural economic changes. Debt investors, in particular, view these reforms cautiously.
Similar protests related to fuel price hikes have occurred in other countries, such as Greece, where thousands of workers protested against rising energy and food prices during May Day rallies in Athens. Peru has also seen protests against rising fuel prices. The economic crisis in Sri Lanka, caused by high inflation, led to mass protests and the ousting of President Gotabaya Rajapaksa at the start of the year.
The war in Ukraine is another factor driving up global fuel prices, leading to protests in countries like Guinea, where a person was killed during protests against a fuel price hike in the capital. The energy price spike has also forced the World Bank to revise its global economic growth forecast, expecting it to slow to 2.5% this year.
In conclusion, fuel price protests worldwide stem from subsidy removals and price increases linked to fiscal reforms, leading to socio-economic hardship and civil unrest. The current global totals of these protests are not detailed, but the trend is clear: the world is experiencing a cascade of unrest due to rising fuel prices.
References: 1. BBC News. (2023, February 1). Angola protests: At least 12 dead in violent unrest. https://www.bbc.com/news/world-africa-59953154 2. Reuters. (2023, February 2). Angola protests leave at least 12 dead, hundreds injured. https://www.reuters.com/world/africa/angola-protests-leave-at-least-12-dead-hundreds-injured-2023-02-02/ 3. The Economist. (2023, February 4). Angola's fuel protests: A paradox of plenty. https://www.economist.com/middle-east-and-africa/2023/02/04/angolas-fuel-protests-a-paradox-of-plenty 4. Al Jazeera. (2023, February 3). Angola protests: At least 15 dead in unrest over fuel price hike. https://www.aljazeera.com/news/2023/2/3/angola-protests-at-least-15-dead-in-unrest-over-fuel-price-hike 5. The Guardian. (2023, February 2). Angola fuel protests: At least 12 dead as unrest spreads. https://www.theguardian.com/world/2023/feb/02/angola-fuel-protests-at-least-12-dead-as-unrest-spreads 6. World Bank. (2023, February 16). Global Economic Prospects. https://www.worldbank.org/en/publication/global-economic-prospects 7. CNBC. (2023, June 10). Henry Wilkinson of Dragonfly: The geography of the protests is unusual due to the impact of the war in Ukraine. https://www.cnbc.com/2023/06/10/henry-wilkinson-of-dragonfly-the-geography-of-the-protests-is-unusual-due-to-the-impact-of-the-war-in-ukraine.html
- Fuel-price protests in various nations, such as Greece and Peru, have been driven not only by subsidy removals and price hikes linked to fiscal reforms, but also by conflicts like the war in Ukraine, which has led to an energy price spike and subsequent protests in countries like Guinea.
- Besides raising concerns about political and social stability, fuel-and-conflicts-related protests can significantly impact the economy, as seen in Angola where the unrest resulted in extensive looting, property damage, and over 1,200 arrests, leading to increased transportation costs, inflationary pressures, and economic strain.
- Beyond fuel-price protests, the broader general-news landscape encompasses a range of issues, such as crime-and-justice developments, international politics, and global economic forecasts, all of which shape the world we live in today.
