Fuel price increase: Latest developments from around the globe

The resumption of fuel price increases around the globe and the rising costs of oil per barrel has fanned concerns of stoking inflation.

While the rising fuel prices put strain on South Africans’ wallets, experts say there is still no reason to panic.

Fuel price increase: Key points

South Africa not yet in red

Dr Azar Jammine tells The Citizen fuel and food price hikes are anticipated as a result of a shortage of wheat and sunflowers due to the Russia-Ukrainian conflict.

Due to the rising costs of living, many South Africans now have to endure salary cuts while being forced to live by a budget well beyond their income.

And while an R40 per litre price point is still unlikely, it’s not completely out of the question either, all thanks to the spike in international crude oil prices.

As per Oxford Economics Africa, oil prices would have to jump to a record level of $150 per barrel, or the rand would have to suddenly depreciate steeply, for this to happen.

ALSO READ: R40 per litre still unlikely, but not completely out of the question just yet

Germany slashes public transport costs

Workers in Germany may be getting a once-off €300 energy allowance (approximately R145 at the time of publishing) to offer relief to low- and middle-income earners.

As reported by The Local, “All employed persons liable to income tax will be paid a one-time flat-rate energy allowance as a supplement to their salary.”

The money would have initially been paid out via the 2024 tax return, however, consumers would have to wait more than two years for the payout.

ALSO READ: Higher fuel price increase predicted for April

Nigerian business forced to close

Meanwhile, small and medium businesses in Lagos are forced to close shop due to soaring diesel costs and the country’s latest spate of prolonged power shortages.

The impact of the Russia-Ukraine conflict is compounded in Nigeria by an unstable power grid and dilapidated infrastructure which often fails to distribute electrical supply.

Nigeria is now experiencing increased periods of blackouts and extended grid collapses in what is feared to be one of the country’s worst recent energy crises.

Soaring fuel prices and social unrest in Spain

The record inflation rates and price hikes fuelled the fury of Spain’s truck drivers, forcing tens of thousands to protest on Wednesday evening.

Protesters brandished signs calling out Spain’s left-wing government as the drive behind energy prices go through the roof.

The rallies were organised by UGT and the CCOO Workers Committees – two of the country’s top unions – under the slogan: Rein in prices, protect jobs, stop the deterioration in living conditions.

Unprecedented fuel price increase in Mumbai

The retail fuel price in Mumbai on Wednesday increased to ₹111.67 (approximately R21.56) for petrol, while diesel now costs ₹95.85 (R18.51)

This is the highest the rate has been since June 2021, when diesel went for ₹95.7 per litre. The fuel price had been stable for the last four months.

Motorists and transporters said the hike in prices was a shocking move and fear the impact it may have on livelihoods in Mumbai.