GLOBAL markets could see higher prices for flour, bread and other wheat-based products, while importers may also face tighter diesel supplies, as disruptions in global energy markets threaten to drive up fuel and shipping costs.
The development comes as attacks on Russian refineries have worsened an already tight global diesel market, according to the Financial Times, with disruptions threatening to further constrain supplies and push up prices.
The implications could extend beyond the energy sector, particularly for countries such as Guyana that depend heavily on imports. Higher diesel and shipping costs could increase the expense of bringing wheat and other food commodities into the country, with those additional costs potentially being passed on to consumers.
Flour is a key ingredient in bread, pastries, pasta and other commonly consumed products, meaning sustained increases in import and transportation costs could eventually be reflected on supermarket shelves.
The global fuel squeeze could also create challenges for businesses dependent on diesel for transportation and other operations.
Guyana has moved early and aggressively to cushion households and farmers from soaring global prices, reversing hefty fees, cutting taxes and investing billions of dollars in food production and infrastructure, while keeping inflation near four per cent.
These measures, Guyana’s President, Dr Irfaan Ali, recently pointed out, were taken against the backdrop of shocks stemming from the lingering impact of COVID-19 and the Russia-Ukraine war, as well as climate-related disasters and instability in the Middle East.
Notably, during the onset of the Russia-Ukraine war, Guyana began trials to produce wheat, corn and soya in a bid to boost local self-sufficiency.