The oil prices increases reduce the national output, change in the structure of spending and production, and shifts the economy to a lower economic growth path.
The oil price shocks increase the total important bill largely because of the huge increase in the cost of oil and petroleum products.
While international crude prices have risen sharply in the last six months , a major reason for the high selling price of petrol in South Africa is the high levy of local taxes.
The Minister of Mineral Resources and Energy, Mr Gwede Mantashe released the media statement announcing the adjustment of fuel prices with effective from the 06th October 2021.
"Crude oil prices, the avarage Brent Crude oil increased from 72.50USD to 75.50USD per barrel during the period under the review. The Energy Information Adminstration (EIA) latest data suggested that the crude oil inventories in the United states of America were 414 million barrels which is 8% under the five year average for this time of the year. It is expected that the natural gas crunch in Europe will spoil over to other countries and lead the higher oil price", the statement read.
Sources: Facebook, Updates with LolaM.
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