In South Africa, inland consumers are currently paying R22.36 per litre of Petrol 95 and R24.31 per litre of Diesel 50ppm.
These prices may not be as high as they were a few months ago, but they are still astronomical when compared to pre-Covid times when R16 a litre was considered remarkably expensive.
Why prices are high
International fuel prices have been rising consistently over the past year as the world grapples with growing demand for, and a lack of crude oil.
New York Times reported that the biggest driver behind higher fuel costs is the spike in prices of crude oil due to increasing demand and a supply that is struggling to keep up.
The latter became a huge market mover when Russia, the world’s second-largest oil producer, invaded Ukraine in February which resulted in aggressive trade sanctions that saw Russian oil nearly completely vanish from circulation and the price shoot up as a result.
Similarly, the oil-producing nations (OPEC) are struggling to put out more of the product as sanctions have also hit Iran and Venezuela, while production in Libya has been thwarted by sociopolitical unrest, according to Focus Economics.
Even before these factors started affecting supply, oil, and subsequently fuel prices were steadily on the rise as Covid-19 restrictions were wound down around the world and saw commuting, offices, and travel spring back to life, and therefore, the need for fuel.
Supply could not keep up with the rapidly-increasing demand, translating into climbing prices at the pumps, which was compounded when Russian oil was snatched from the market.
South Africa vs The World
South African fuel prices are currently close to their all-time high, with more price hikes possibly on the horizon.
While this may be the case, local motorists will be glad to know that they are not the only ones paying through the nose for fuel.
The table below details domestic fuel prices compared to those in Australia, Canada, New Zealand, the United Kingdom, as well as the United States, showing that while we aren’t paying the least for the liquid gold, luckily we’re not paying the most, either.