Peru – Ukraine crisis takes a toll on Peru’s economy

Location: Lima, Peru

Language: Spanish

Duration: 00:02:27

Source: A24

Restrictions: A24 Subscribers

Dateline: 06/04/2022

Storyline

As the Ukraine crisis rages with no breakthrough on the horizon, the world is still being heavily impacted by the continued increase in prices, driven by the shipping disruption and the increase in oil prices. Peru, is by no means, an exception. The economic fallout has taken its toll on Peru, as oil prices continue to skyrocket, affecting all aspects of everyday life, especially for commuters. Most of the prices have been fixed, nonetheless, they are feared to follow suit. Herbert Mujica , who is a Journalist and Political Analyst, said the consumers are the ones who bear the brunt of the worsening financial situation and have to pay the additional cost from the rise of oil prices because they are the ones that use the vehicles in the streets.

Shotslist

(Soundbite) Herbert Mujica , Journalist and Political Analyst:

“The rise in oil prices due to the conflict between Ukraine and Russia isn’t just here in Peru. Nonetheless, it is worth mentioning that in Peru, without any wars; there is a very unknown issue: Oil prices in Peru are set by a law contract. When the nation buys the remaining oil that it needs aside from the local production, it does so at international prices, and when international prices go down, they do not go down on the local level. The international price always prevails; so, in consequence, that spurs oil prices locally to rise whether there’s a war or not. So all of that goes to the final consumer which has to pay any additional cost from the rise of oil prices because they are the ones that use the vehicles in the streets. “

(Soundbite) Gustavo Ibañez, Lima inhabitant :

“I come from the northern area, from Puente Piedra to work here in Miraflores, and every day I commute about 35 Km, and I used to spend 15 Soles in LPG (liquefied gas) and now, I’m spending about 30 soles every day, this affects my finances; so have to take on several other jobs to complement my main salary .”

(Soundbite) Renzo Salcedo, Local Entrepreneur :

“Yes, I’ve noticed how some product prices have seen an increase; for example, the basic food basket when you go to the supermarket, definitely some prices have risen, the other thing are taxis, they have also increased their prices. Obviously because of the rise in oil prices, and in my business, some transportation costs have already started to increase.”

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