Rich countries guzzle the fuel in the morning, while the poorer countries are in turmoil

Pakistan’s government announces regular blackouts and hikes in electricity bills because it can no longer provide enough fuel. Shops in Bangladesh close at 8pm to conserve energy, and the Mexican government has increased subsidies to reduce residents’ electricity bills.

The crisis comes at a particularly difficult time: the global transition to cleaner energy sources has meant that advanced economies have not invested in efforts to increase fossil fuel production, while poorer countries have been pressured to use cleaner-burning natural gas. Now that gas prices have risen more than 150 percent since the Russian invasion in February, and richer countries are still able to pay more to secure the supplies they need, developing countries simply cannot compete.

“It doesn’t look like they can offer a higher price than developed countries,” said Muqsit Ashraf, head of Accenture’s global energy industry division in Houston. – This already has significant economic consequences; moreover, it will affect their ability to finance other economic and national priorities.”

This problem is observed throughout the developing world.

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