Question
Explain the effects of over-reliance on oil as a source of energy.
Answer
- A lot of foreign exchange reserve is used in oil importation. This affects other sectors of the economy.
- When prices of oil increase, non-oil producing states, economy is affected.
- May lead to increase of prices of goods resulting from inflation.
- May affect agricultural production resulting to scarcity of food / raw materials.
- May result to increase of fares that is passed on to passengers.
- When prices of oil increase, non-oil producing states, economy is affected.
- May lead to increase of prices of goods resulting from inflation.
- May affect agricultural production resulting to scarcity of food / raw materials.
- May result to increase of fares that is passed on to passengers.
Related Questions
Related Topics