MOTORISTS are facing another fuel price hike on Wednesday that will increase the price of petrol and diesel to only a few cents from the record highs of June 2022.
Of significance is that the records of June 2022 were the result of an extraordinary rise in oil prices when the benchmark Brent crude price spiked to nearly US$140 per barrel, soon after Russia’s invasion of Ukraine. Currently, oil prices are merely doing their seasonal uptick at the start of the Northern Hemisphere’s winter and sitting at a ‘reasonable’ US$95 per barrel.
While the war in Ukraine is still a concern – leading to lower oil and gas supplies – the weak rand is a much bigger problem for SA motorists. In July last year, the rand fluctuated between R16 and R17 to the dollar. moneyweb.co.za