All eyes on fossil fuel

Allow me space to reaffirm my prediction some 12 months ago, through this column, that the hyper inflation worldwide was imminent beyond the normal economic conditions of supply and demand on the usage of fossil fuel energy sources due to the Coronavirus (Covid-19) pandemic-induced restrictions.
What is underplayed as pointed out earlier was the potential snowballing effect of the COP26 undertakings to phase out the usage and reliance of fossil fuel energy sources that would trigger another wave of global recession since the 1973 oil crises.
As presumed, the oil producing and exporting countries (Opec) and their affiliates will be meeting this month to consider options to restrict fossil fuel supply and also fix a price to reap greater returns within the 2050 zero emissions timeframe.
So far, the US government, under President Joe Biden, is taking proactive action to release strategic oil reserves into the domestic market counter the looming threat of fossil fuel crises and is already urging bigger economies like China and India to release their own strategic supplies into the market.
Interesting days ahead for the world to mitigate the eminent hyper inflation crises in this unfortunate economic battle between Opec+ nations and the world.
For PNG, it’s both good and bad news as a fossil fuel exporting country to reap a higher export and related tax revenue for the government to deliver goods and services into the future but at the same time the consumers will be worse off in paying for higher prices for goods and services.

Observer NCD