Bombing in the Middle East Could Blow Up Petrol Prices In SA

The ongoing conflict between Israel and Iran could soon be felt at petrol stations across South Africa.

Although far from our shores, tensions in the Middle East (especially threats by Iran to block the Strait of Hormuz, a vital global oil shipping route) are likely to cause oil prices to rise. With nearly 20% of the world’s oil passing through this narrow waterway, any disruption could send international oil prices soaring.

‘Higher global oil prices directly affect how much South Africans pay for petrol and diesel’

Higher global oil prices directly affect how much South Africans pay for petrol and diesel. Local prices are adjusted monthly based on international oil costs and the rand-dollar exchange rate. A sharp increase in oil prices would not only undo the recent small fuel price drop but could also result in another round of increases. This would hit consumers hard, especially those already struggling with high transport and food costs.

When fuel prices go up, so do the costs of transporting goods. That means everything from basic groceries to taxi fares could soon be more expensive. 

While the fighting in the Middle East continues, South Africans will be keeping a close eye on both the oil market and local pump prices in the weeks ahead.