DAR ES SALAAM, April 4 -- ANALYSTS have warned that the recent sharp increase in fuel prices will have far-reaching economic consequences, driving up the cost of living and disproportionately affecting low-income households.

Speaking to Daily News, economist-cum-investment banker, Dr Hildebrand Shayo said fuel is a universal input whose rising cost impacts nearly every sector of the economy. He explained that higher petrol and diesel prices increase transportation costs, which in turn push up the prices of food, manufactured goods and services.

“This leads to cost-push inflation, ultimately reducing purchasing power across the economy,” he said, adding that higher operating costs can also hinder production, reduce business p...