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High fuel prices accentuate rising food prices

  • Key Message Update
  • Chad
  • May 2023
High fuel prices accentuate rising food prices

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  • Key Messages
  • Key Messages
    • As a result of the rise in fuel prices and the decline in agricultural production in the last season due to the loss of crops during the floods, the supply of food products is considerably limited, which results in higher food prices in the markets. This increase in food prices has a negative impact on the food consumption of displaced people and host households in the Lake and Western Sahel (BEG and Kanem). Crisis (IPC Phase 3) outcomes continue to persist in these areas. However, although the depletion of food stocks results in higher food prices, households in the Sahelian areas have access to food through the harvesting of wild products and the sale of small ruminants; thus, Stressed (IPC Phase 2) outcomes are likely in these Sahel areas.

    • The livelihoods of very poor and poor households are being boosted by the resumption of off-season production activities and the start of rainfed cultivation. On the other hand, the fuel shortage due to the closure of the N'Djamena refinery since the end of April and the Sudan crisis are impacting supplies to rural and urban markets and affecting sources of income in most localities (Abéché, N'Djaména, BEG, etc.).

    • Despite the recent off-season harvests, cereal prices, particularly for millet, maize, and sorghum, remain high, at 12, 14, and 10 percent, respectively, compared with the five-year average. This upward trend affects the food consumption of poor and very poor households due to their low purchasing power. In N'Djaména and in major urban centers, this trend is exacerbated by the rise in fuel prices. However, in transhumance and agro-pastoral areas, the pastoral situation continues to deteriorate during the lean season. In the north, animals travel more than 15 kilometers in search of pasture and watering points. The weight of the animals is atypically below normal, significantly reducing the market price of livestock and impacting the income of pastoral households. 

    • The ongoing Sudanese crisis has affected trade flows following the closure of borders with Sudan and has resulted in a large influx of refugees, estimated at 90,000, according to the UNHCR. Sudanese refugees continue to arrive, increasing the need for humanitarian assistance to cover their food and non-food needs. As of May 25, 2023, 59,510 tons of food had been distributed by the WFP in Ouaddaï and Sila.

    Recommended citation: FEWS NET. Chad Key Message Update May 2023 : High fuel prices accentuate rising food prices, 2023.

    This Key Message Update provides a high-level analysis of current acute food insecurity conditions and any changes to FEWS NET's latest projection of acute food insecurity outcomes in the specified geography. Learn more here.

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