• Privacy Policy
  • Advertising
  • Contact Details
Newcastillian News
  • KZN News
    • Municipal
    • Roads & Traffic
    • Weather Updates
    • Events
    • Crime
    • SAPS
    • Politics
  • Local News
    • People
  • Sponsored
  • South Africa
    • Government
    • Travel & Tourism
    • Employment & Labour
    • SARS
    • Legislation
    • Tech
  • Medical
    • Health & Wellness
    • Healthcare
    • Covid-19
  • Business
    • Companies
    • Economy
  • Education
    • Schools
  • Life & Style
    • Animals & Pets
    • Parenting
    • Arts & Culture
    • How To
    • Charity
    • Opinion
    • Religion
  • Sports
    • Angling
    • Cycling
    • Golf
    • Motoring
    • Soccer
    • Striking
    • Rugby
    • Striking
    • Tentpegging
    • Wrestling
No Result
View All Result
KZN News │ Newcastillian News
  • KZN News
    • Municipal
    • Roads & Traffic
    • Weather Updates
    • Events
    • Crime
    • SAPS
    • Politics
  • Local News
    • People
  • Sponsored
  • South Africa
    • Government
    • Travel & Tourism
    • Employment & Labour
    • SARS
    • Legislation
    • Tech
  • Medical
    • Health & Wellness
    • Healthcare
    • Covid-19
  • Business
    • Companies
    • Economy
  • Education
    • Schools
  • Life & Style
    • Animals & Pets
    • Parenting
    • Arts & Culture
    • How To
    • Charity
    • Opinion
    • Religion
  • Sports
    • Angling
    • Cycling
    • Golf
    • Motoring
    • Soccer
    • Striking
    • Rugby
    • Striking
    • Tentpegging
    • Wrestling
No Result
View All Result
KZN News │ Newcastillian News
Home Business Economy

Ukraine crisis could see petrol price jump to R25 a litre soon

Quinton Boucher by Quinton Boucher
25 Feb 2022
in Economy, South Africa
Reading Time: 3 mins read
0
Ukraine crisis could see petrol price jump to R25 a litre soon

Estimated reading time: 2 minutes

Global tensions are running high following Ukraine being invaded by Russia. 

Adding to this, financial markets have been roiled in recent days by the escalating crisis in Ukraine, pushing up the Brent crude oil price to US$97/bbl on Wednesday, 23 February 2022, and Thursday, 24 February 2022, to US$102/bbl, with the potential for further escalation. 

For South Africa, which imports oil instead of exploring and extracting its own, higher oil prices would push up inflation substantially.

Chief Economist at Investec, Annabel Bishop, says, “The petrol price, already at R20/litre, could jump to R25/litre in the near term. A R1.26/litre increase is building for March — a figure that would be would be significantly higher were it not for some rand strength earlier in the month.”

Bishop explains that South Africa’s trade surplus, currency and government finances have all benefited from the strong export value of commodity prices in the past 18 months.

“SA is a key commodity exporter (chiefly of metals, minerals and agricultural products), but an escalation in hostilities in Eastern Europe could see commodity prices falling as markets anticipate lower economic growth,” she says.

OPEC+, however, keeps its oil prices high by quota controls and has already demonstrated supply shortage this year, bolstering the oil price above US$80/bbl even before the conflict erupted. 

Delving deeper into the matter, Bishop highlights, “Russia is a key oil and gas exporter, and there may be little coincidence in the timing of hostilities, with the Ukraine now in the depths of the Northern Hemisphere winter and Europe heavily reliant on oil, coal and gas.” 

The increased likelihood of war forewarns further supply shortages in an already tight market. Precious metals have gained significantly on safe-haven flows, but some other (non-energy or precious metal) commodity prices have dropped.

On a further note, Bishop says, “The futures market for commodities has been running very high this year, especially contracts for immediate delivery. But further escalation in military conflict, particularly one which draws in other countries in region and beyond, is likely to yield a slump, leading commodity prices lower.”

Russia is expected to push its objectives and persist with its aggressions, but these could wax and wane on interactions with the US/UK and others involved in attempting a peaceful resolution.

What are your thoughts on the matter? Share your views in the comment section below.

RELATED NEWS

  • Large jump in Petrol prices as of 1 December 2021
  • 21-year-old woman stabbed to death
  • This is why Diesel prices are about to jump R1.48 per litre
  • Major petrol price increase on 1 February
  • Methodist Church paves the way to Mandela Day
Tags: Annabel BishopBrent Crude OilChief EconomistDiesel PricesInflationInvestecParaffinPetrol PricesPrice IncreasesSouth Africa
ShareTweetSend
Previous Post

This is how much more you will pay for alcohol and tobacco products 

Next Post

Barry Hertzog Park pooh pit: Family discusses life with the trench

Related Posts

Cholera outbreak prompts extensive testing by Gov
South Africa

Cholera outbreak prompts extensive testing by Gov

by Quinton Boucher
26 May 2023
0

In response to the recent cholera outbreak that tragically claimed the lives of 17 residents in Hammanskraal, located north of...

AA breaks down petrol prices in South Africa
South Africa

AA breaks down petrol prices in South Africa

by Quinton Boucher
23 May 2023
4

In May 2023, the GFL and RAF levies together amount to R6.14 per litre of petrol sold in the country,...

Eskom denies threat of blackout, assures public of power system stability

Eskom denies threat of blackout, assures public of power system stability

17 May 2023
DIY security advice

10 Effective DIY security features for homeowners in South Africa

11 May 2023
Loadshedding Eskom Electricity Power

Eskom proposes loadshedding schedules up to stage 16

11 May 2023
Next Post
Barry Hertzog Park pooh pit: Family discusses life with the trench

Barry Hertzog Park pooh pit: Family discusses life with the trench

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

SEARCH

No Result
View All Result

CATEGORIES

RECENT COMMENTS

  • Corrine barnes on NKZN paramedic fatally shot while heading home
  • Senzo on Sumitomo Rubber SA’s CEO addresses strike action at Ladysmith plant
  • jiki-jiki on Sumitomo Rubber SA begins dismissing participants in protest
  • Shawn Vermaak on Newcastle SPCA rescues 28 caged dogs from poor living conditions
  • Wendy Bezuidenhout on Chelmsford Nature Reserve challenged by poaching and resource constraints
  • Tertius Dreyer on Chelmsford Nature Reserve challenged by poaching and resource constraints
  • Ghost on Newcastle Municipality makes breakthrough in long-standing sewage issues
  • Ashen Mahabeer on Chelmsford Nature Reserve challenged by poaching and resource constraints
  • CULLUM CULLUM on Chelmsford Nature Reserve challenged by poaching and resource constraints
Newcastillian News Logo 2022 png

NEWCASTILLIAN NEWS

is an independent news product focused on Northern KwaZulu-Natal with overflow into the province.

IMPORTANT LINKS

  • Privacy Policy
  • Advertising
  • Contact Details

SEARCH

No Result
View All Result
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

© 2022 Newcastillian News - KwaZulu-Natal by Pixelfish Marketing Solutions.

No Result
View All Result
  • KZN News
    • Municipal
    • Roads & Traffic
    • Weather Updates
    • Events
    • Crime
    • SAPS
    • Politics
  • Local News
    • People
  • Sponsored
  • South Africa
    • Government
    • Travel & Tourism
    • Employment & Labour
    • SARS
    • Legislation
    • Tech
  • Medical
    • Health & Wellness
    • Healthcare
    • Covid-19
  • Business
    • Companies
    • Economy
  • Education
    • Schools
  • Life & Style
    • Animals & Pets
    • Parenting
    • Arts & Culture
    • How To
    • Charity
    • Opinion
    • Religion
  • Sports
    • Angling
    • Cycling
    • Golf
    • Motoring
    • Soccer
    • Striking
    • Rugby
    • Striking
    • Tentpegging
    • Wrestling

© 2022 Newcastillian News - KwaZulu-Natal by Pixelfish Marketing Solutions.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?