The Department for International Development (DFID) is taking a close interest in the effects of rising oil prices in sub-Saharan Africa, drawing on reports by the OECD and the International Monetary Fund (IMF), as well as our own assessments. The dollar price of crude oil has doubled over the past two years. The economic impacts in Africa vary from country to country, with oil producers generally gaining through increased foreign earnings.
Non-oil producers have experienced reductions in economic growth. According to the IMF, an increase in the real price of crude oil from $75 to $100 from October 2007 to April 2008 has reduced economic growth by between 0.2 and 1.0 per cent. For some countries, the impacts of high oil prices has been partly offset by higher prices earned from other exported commodities. For all countries, there have been increases in the consumer price of oil products, such as petrol and kerosene.