Volatile Petrol Prices and US Interest Rates will cause turbulence in the world economy.
South Africans need to brace for another significant price jump at the petrol pumps in July as we’re seeing a weakening of the Rand against the US Dollar and further strain on global oil prices.
JPMorgan Chase, the largest bank in the United States, predicts a further jump to $185 a barrel by the end of 2022 as nations shun Russian oil. About 66% of oil produced by Russia can currently not find a buyer. (The current Brent Crude price as at 15 June is $120 per barrel).
Dr. Francois Stofberg, a Senior Economist at Efficient Group, says this would result in a direct increase of R5-R7 per litre of oil.
“You’ll see R4 to R5 increases easily to the petrol price if we reach $185 a barrel, and of course, that would hurt tremendously if you are already R21/R22 where you be paying R25 to R27 that is a 25% additional …