Economist warns SA’s limited refining capacity could leave motorists facing steep fuel prices - EWN

An economist has warned that South Africa’s limited refining capacity could leave motorists facing steep fuel price increases as global oil prices surge. Early snapshots from the Central Energy Fund are already pointing to increases of around R2 a litre for both grades of petrol next month, and between R1,50 and R1,80 for diesel.

ALSO READ: Record high fuel prices predicted for October Brent crude is trading above $100 a barrel amid the conflict in the Middle East and the closure of the Strait of Hormuz. KPMG Lead Economist Frank Blackmore said that crude oil is only part of the problem. "We've seen around a 100% increase over time, while crude has only gone up around 30% over the same period. So, it's those refined products that are driving much of the pressure." Blackmore said South Africa’s reliance on imported refined fuel leaves the country more exposed to international price movements.