Financial markets have been roiled in recent days by the escalating crisis in Ukraine, pushing up the Brent Crude Oil price past the $100/barrel mark and weakening emerging currencies such as the rand.

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

Oil And The Rand 

Rising crude oil prices, amidst escalating fears created by the conflict in Ukraine, is one of the main reasons for a jump in SA fuel prices announced by Minister of Mineral Resources and Energy Gwede Mantashe on Saturday.

Oil rose further in early morning trading on Friday (25 February) due to concerns that financial sanctions on Russia may impede global fuel supply chains, following a wild session in which prices spiked more than 9% before giving up gains.

As from 2nd March the price of petrol (both 93 and 95 ULP & LRP) will increase by R1.46/l, that of diesel (0.05% sulphur) by R1.44/l, diesel (0.005% sulphur) by R1.48/l, illuminating paraffin (wholesale) by R1.21/l, and the maximum LPGas retail price by 70 cents/kg.

Mantashe points out in a statement that subsequent sanctions on Russia by the US and UK have contributed to the increase in crude oil prices. Furthermore, the Organization of Petroleum Exporting Countries (OPEC) and Non-OPEC members are still not meeting agreed production targets, leading to lower supplies of crude oil and an increase in prices.