While motorists have been granted a slight respite here and there with the price of fuel, the general trend has been a gradual and increasingly frustrating price increase at the pumps. Rumours have been floating around of an imminent increase to R40/litre. Here’s why that might not be too far off…
Having reached a record high of over R21/litre of 95 Octane just this month, motorists can likely expect an exponential increase in the price per litre, a major contributing factor here being the war between Russia and Ukraine and the subsequent skyrocketing of the price of oil. Globally, the price of fuel continues to climb amidst the conflict.
The average price of fuel in the has shot up to 159,6p/litre, however for the first time ever, certain parts of the United Kingdom have seen the price of fuel surpass the £2/litre mark, surging up at the fastest pace in 13 years. At the current exchange rate, that translates roughly R37,96/litre. Some quick maths there means that filling up the average hatchback with 95 Octane fuel will cost in the region of R2 000.
The banning of Russian oil exports is likely to cause the petrol price to continue to climb as the supply of oil decreases and the demand increases. Global production will take some time to ramp up, so as a result the U.S. and other buyers will chase after limited supplies, creating abroad-spectrum upheaval unseen in decades. It’s no secret that the price of Brent Crude oil has an impact on the cost of groceries, too, and so with transportation costs increasing, further squeezing household budgets in addition to their own personal transportation.