Russia’s invasion on Ukraine has already had a major impact on thousands of civilians as they attempt to escape the violence. However, separated by thousands of kilometres, the conflict could have a devastating impact on the pockets of motorists as local fuel prices may skyrocket to R40 a litre.
According to André Thomashausen, an emeritus professor of international law at Unisa, if the conflict between the two nations escalates, this may just be the reality that South Africans will have to face.
It’s a worst-case scenario that may be likely when considering the impact that the invasion has already had on crude oil prices, as per IOL.
“In a worst-case scenario, South Africa could expect liquid fuel prices to increase to about R40 per litre,” said Thomashausen when speaking with the online publication.
Fuel prices may not be the only thing that burns a hole in South African’s pockets as Eskom relies heavily on imported diesel.
“As Eskom energy production depends much on imported diesel, electricity prices could increase by up to 40%.”
“This could have a devastating effect on all the parameters of the current budget and sink South Africa’s hopes for a post-Covid economic recovery,” he added.
Unfortunately, the ripple effect of Russia’s continued presence in Ukraine doesn’t end there. According to City Press, a drastic increase in oil prices will directly affect farmers’ costs, which could lead to a significant increase in food prices.
South Africans are already forking out a whopping R21 a litre on petrol which took effect on 2 March 2022.
Keyword: Fuel prices could rise to R40/litre