Slovenia caps fuel purchases amid energy shortage

Slovenia has become the first European Union member state to bring in fuel rationing as a way of managing disruption to supply caused by the conflict in the Middle East.

Under the new measure, customers with private vehicles will be restricted to 50 liters per day with a 200-liter limit for companies and other special cases such as farmers. The government had already begun releasing strategic reserves in an effort to stabilize the market.

Across the country, long queues have formed at petrol stations, with some locations reporting limited availability of diesel. Notices warning customers about shortages have become increasingly common, reflecting the strain on supply chains.

Despite the visible pressure, many drivers said they are not engaging in panic buying.

"I think that's nonsense. Even if the price goes up ten cents it is not a disaster," said Robert, a motorcyclist.

Others, however, expressed concern over how the situation has been handled.

"I wish they would have released fuel reserves sooner and bought more reserves of the fuel for which we knew a month ago there was going to be difficulties," said Severin, a car driver.

Even with the release of strategic fuel reserves, logistical challenges remain a key issue. Many distributors store fuel outside the country, and transport capacity has struggled to keep pace with the recent spike in demand.

Analysts said consumption has increased sharply, driven in part by behavior linked to previous crises.

"They still remember 2022, when the prices were higher for a longer period of time, so they are hoarding the gasoline if they can. They're buying as much as they can, and I think that's the main reason," said Karel Lipnik, a financial analyst at Delo, a national daily newspaper in Slovenia.

Cross-border demand is also contributing to the strain. Slovenia's relatively low fuel prices compared to neighboring countries have attracted foreign buyers, further increasing consumption.

"Slovenia has the lowest price within all the neighboring countries, and it's also spring, so a lot of farmers buy gasoline to do some farming on the fields," Lipnik said.

While fuel prices in Slovenia remain state-regulated, the impact of global market disruptions is becoming increasingly evident. Analysts warned that the period of stable and relatively low fuel prices may be coming to an end, as external shocks continue to influence supply and demand.

Slovenia caps fuel purchases amid energy shortage

Rising costs of agricultural fertilizers, triggered by ongoing tensions in the Middle East, are threatening Africa's fragile food security.

The Strait of Hormuz connects major oil and fertilizer producers in the Middle East to markets around the world. Any disruption there quickly spreads across global supply chains.

Natural gas, a key ingredient in fertilizer production, has become more expensive since the war on Iran began on Feb. 28, pushing fertilizer prices even higher. In sub-Saharan Africa, the impact could be severe.

Countries like Sudan, Somalia, Tanzania, and Mozambique rely heavily on imported fertilizers -- much of it coming through this route. At the same time, fertilizer use across the region is already among the lowest in the world.

Farmers in Port Sudan, a port city on the Red Sea coast in eastern Sudan, are facing mounting uncertainty. With fertilizer prices rising and supplies tightening, many may be forced to cut back on planting. That could mean smaller harvests in the months ahead, and greater pressure on already fragile food systems.

"We are already struggling to afford fertilizer. If prices go higher or supplies stop, we won't be able to produce enough food," said Yaseen Ibnawf, a local farmer in Sudan.

For smallholder farmers, higher prices mean reduced usage, which often leads to lower crop yields.

An economist has warned of a "cascading crisis" as fertilizer becomes costly, increasing the risk of hunger.

"Supply disruptions, combined with rising energy costs, are making fertilizers unaffordable for vulnerable regions, increasing the risk of hunger and economic instability. Sudan can find alternative markets to sustain the production, but the rising cost will impact the supply and the agricultural output," said Mohamed Al-Nayer, an economic analyst.

Experts say that the consequences could extend beyond agriculture, affecting food prices, household incomes, and national economies.

Rising costs of fertilizer threaten Africa's food security