The rise in the price of oil on the international market is increasingly worrying. If there is no word from the Burkinabè National Hydrocarbons Company (SONABHY), it is to be feared that the Burkinabè will be called upon, once again, to put their hands in their pockets.
Indeed, the barrel of Brent oil or North Sea crude has a tendency to approach dangerously the $100 mark. A threshold never reached since the summer of 2022. On Monday September 18, 2023 in London, it rose 0.28% to $94.19, after peaking at $94.78 for delivery in November. And this was confirmed the next day, September 19. At the opening it was trading at $94.66, reaching $95.33 at midday. A month ago, on August 24, it was at $83.07 per barrel.
Since the end of June, the price of Brent has soared by around 25%. According to Energi Danmark analysts, the oil market “currently receiving many bullish signals“, with “growing demand for UNITED STATES and in Chinewhile the offer faces intentional (…) limitations“. Specialists fear a significant deficit on the market with the voluntary reductions of Saudi Arabia and Russia of around 1.3 million barrels per day. A decision that the two countries have decided to extend until the end of 2023.
Indeed, as far as we are concerned, the prospect of an upward trend in the price of oil will disturb the sleep of the Burkinabè already affected by the high cost of living. This, especially since the latest increase in current prices at the pump by 100 FCFA/l, from 750 to 850 FCFA/l for gasoline and from 575 to 675 FCFA/l for diesel, dates from February 2023 Before this, the previous increase on August 18, 2022, was 35 FCFA for super 91 and 30 francs for diesel. The risk of seeing the price of gasoline increase further at the pump can no longer be ruled out. With its corollary of cascading increases in the prices of other goods, starting with those of transport.
Indeed, you should know that the prices of hydrocarbons are subsidized by the State to make them accessible to consumers. However, in these times of security crisis, the top priority for the State is the fight against terrorism. This requires a reorientation of public spending. So much so that the State has difficulty honoring its commitments to SONABHY within a reasonable time frame. Thus putting pressure on the treasury of the National Oil Company. Who could, in the event of default or late payment, have their taps cut off by their suppliers. So let’s cross our fingers and bet that it’s just a bad dream!
Aly Konate
