Kaya 959 Reporter
The woes of rising fuel prices in South Africa are expected to continue because of the Russia-Ukraine conflict.
South Africa’s petrol price saw a dramatic rise on the 2nd of March, and motorists are now paying a whopping R21 a litre on petrol.
Russia is the world’s leading oil producer and the most direct effect of the crisis on South Africa will be the oil price.
The devastating impact of the Russia-Ukraine is expected to be felt throughout the world, particularly in South Africa’s pockets.
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Fuel prices to increase to about R40 per litre
According to André Thomashausen, who is an emeritus professor of international law at Unisa, who spoke to IOL News; things are far from over as far as petrol prices are concerned.
“In a worst-case scenario, South Africa could expect liquid fuel prices to increase to about R40 per litre,”
“As Eskom energy production depends much on imported diesel, electricity prices could increase by up to 40%.”
“This could have a devastating effect on all the parameters of the current budget and sink South Africa’s hopes for a post-Covid economic recovery,” said Thomashausen,
Over last week, the news that the oil prices surpassed the $100 per barrel mark, the highest level since 2014 sent shockwaves to the world.
The conflict won’t only hurt motorists in the long run, but will also increase the price of bread, as Russia and Ukraine supply about 30% of the world’s wheat.
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