Ukraine war blamed for fuel price hikes throughout Africa

JOHANNESBURG — South Africans are feeling the bite of fuel price increases as a result of Russia’s war in Ukraine and the rise in the Brent crude oil price.

Neighboring Zimbabwe and other African countries are also grappling with increasing fuel prices.

South Africa, the continent’s most developed economy, saw gas prices go above $1.50 per liter, which comes out to more than $5.80 per gallon. Diesel prices also went up.

The latest increases make fuel in South Africa about 40% more expensive than a year ago. To try to hold down the spike in price, the government has reduced its tax on fuel sales.

The government said the increases were a result of the rise in the price of Brent crude oil.

The fuel price increase is the latest addition to South Africa’s economic woes, which include a 34.5% unemployment rate and an economic downturn caused by the COVID-19 pandemic which resulted in the loss of an estimated 2 million jobs.

Economists are warning of further increases throughout the year, which will hit consumers already dealing with rising food, electricity and transportation costs, said Jannie Rossouw, a professor at the University of Witwatersrand.

The biggest impact would be felt by the poor, who are already facing economic hardship, he said.

“The government has to do what it expects ordinary people to do by also cutting costs and using public money frugally because reducing the fuel levy will have a big impact on its revenue collection,” he said.

Soweto motorist Mwelase

Mooki waited in line at a gas station line to fill up before an increase went into effect.

Fuel prices have also risen in neighboring Zimbabwe. Gasoline now costs about $1.70 per liter, up from $1.44 before Russia’s invasion of Ukraine. The government attributes the increases to the war in Ukraine that began on Feb. 24.

To reduce fuel prices, Zimbabwe has reintroduced the mandatory blending of gas with ethanol produced locally. Starting as of Wednesday gasoline will be blended with 20% ethanol, which will reduce the pump price by 7 cents, said information minister Monica Mutsvangwa.

Zimbabwe’s government also said this week that it will embark on a $20 million upgrade of an oil pipeline from Mozambique’s port city of Beira to increase its capacity and reduce the inland country’s reliance on trucks to deliver fuel.