Araweelo News Network – Associated Online Agencies
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Hargeisa (ANN)– A growing wave of public frustration is unfolding across Somaliland following a controversial government decision on fuel pricing, as the global impact of the Middle East conflict continues to drive up oil costs.
The US Dollar comes as rising international fuel prices—linked to escalating tensions in the Middle East—begin to hit local markets, placing additional pressure on consumers already facing economic challenges.
Conflicting Price Decisions
The Ministry of Commerce Somaliland recently issued a new official petrol price per litre that exceeded the rates previously charged by private fuel companies at petrol stations.
The announcement triggered immediate backlash, with many citizens questioning why the government-set price was higher than what companies had already been selling fuel for.
Earlier, authorities had communicated a different pricing structure to fuel stations—one that appeared more aligned with public expectations. However, the sudden revision created confusion and anger, forcing the government to withdraw its earlier directive.
Public Reaction and Criticism
The decision has sparked widespread criticism, with many residents accusing the government of failing to protect consumers from rising costs.
Public sentiment has been shaped by the perception that oil companies are dictating prices, while the government appears to be reacting rather than regulating.
Citizens expressed concern that instead of shielding the population from global economic shocks, authorities may be enabling higher prices.
Economic Pressure from Global Conflict.
The one dollar is now trading at around 10,700 – 11,000 Somaliland shillings, a significant jump that has weakened local purchasing power. At the same time, the government has set a new fuel price of 12,500 SlSh per litre, up from about 11,500 SlSh, intensifying public frustration.
Household Impact: Rising Daily Costs
For ordinary citizens, the impact is immediate and widespread. Fuel is a backbone of the local economy, affecting:
Transportation fares
Food prices
Water delivery costs
Electricity (especially generator-dependent areas)
With petrol now costing approximately $1.17 per litre, families are forced to spend a larger share of their income on basic needs. Even small increases ripple through the entire market.
Regional Comparison
At roughly $1.17 per litre, fuel prices in Somaliland are:
Higher than some oil-producing countries
Comparable to or above prices in parts of East Africa
This raises concerns about competitiveness and affordability in a low-income economy.
Analysts point to the ongoing instability in the Middle East as a major driver behind the in fuel prices worldwide. Supply concerns and market uncertainty have pushed costs upward, affecting import-dependent regions like Somaliland.
For many households, fuel price increases have a ripple effect—raising transportation costs, food prices, and overall cost of living.
Uncertain Path Forward
The government’s reversal of its earlier pricing decision suggests internal pressure and sensitivity to public reaction. However, it remains unclear whether a stable pricing policy will be established in the near term.
As global oil markets remain volatile, Somaliland faces a difficult balancing act between managing external economic pressures and maintaining public trust at home.
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Araweelo News Network – Associated Online Agencies
By Arraale M Jama Freelance Journalist and Human Rights
activist.