Russian Invasion of Ukraine Could Drive Fuel Price Over R40 a Litre

Russian Invasion of Ukraine Could Drive Fuel Price Over R40 a Litre

  • The Russia-Ukraine War has had a huge impact on the world and it is having a direct impact on the price of fuel
  • This could see the price of fuel rise to over R40 a litre in a worst-case scenario which could have a knock-on effect on the economy
  • Eskom faces serious challenges and food security is also in jeopardy with fuel being a key factor in the production costs

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PRETORIA - Russian unprovoked invasion of the sovereign state of Ukraine has had a negative impact on fuel prices around the world.

The Russian-Ukraine war has driven up the cost of crude oil which could see the price of fuel in South Africa double to over R40 a litre.

André Thomashausen revealed that Eskom relies on a large amount of imported diesel which could drive costs of electricity production up by as much as 40%.

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Russian-Ukraine War, Fuel prices, Economy
The Russian-Ukraine war could drive the price of fuel to over R40 a litre. Photo credit: Kyodo News
Source: Getty Images

This could sink South Africa's hopes of a successful post-Covid19 recovery due to the impact of fuel prices on the economy according to MyBroadband.

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The higher fuel prices would have a knock-on effect on food security as it impacts farmers' ability to produce food.

Fuel costs make up 13% of the grain production costs and approximately 80% of South Africa's grain is transported by road.

In addition, the price of fertiliser has risen by a whopping 70%, Russia happens to be the largest exporter of fertiliser in the world.

IOL reported that all these factors could see a price explosion in energy markers and Russia diverts its gas supplies from Europe to China.

Russia Ukraine war: South Africa's fuel and food prices may be affected

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Earlier, Briefly News reported that in the early hours of Thursday morning, 24 February, Russian President Vladimir Putin realised the fears of many world leaders and Ukrainian citizens by announcing that Russian soldiers would be invading Ukraine. The Russian president also warned other world leaders that should they try to intervene in his efforts, they could face severe consequences.

Putin's decision comes after months of speculation that Russia was making preparations to invade Ukraine by establishing military training posts near Ukrainian borders.

In the months leading to the invasion, world leaders such as US President Joe Biden attempted to hold talks with Putin, which proved to be unsuccessful.

Source: Briefly News

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