Drivers in 5 Countries Race to Pumps as Oil Shock Wipes Out Tax Cuts, Sends Prices Soaring Past $115
Drivers in 5 Countries Race to Pumps as Oil Shock Wipes Out Tax Cuts, Sends Prices Soaring Past $115
Drivers across Africa, Asia, and Europe are scrambling to fill their tanks as a war-driven oil crisis sends fuel prices to record highs, with global crude briefly surging above $115 per barrel after a drone strike on a tanker near the United Arab Emirates sparked fears of a supply shutdown.
In South Africa, motorists faced a midnight price hike despite a government tax cut. Authorities slashed the general fuel levy by 3 rand per liter to soften the blow, but the relief was overwhelmed by the surge in global crude costs driven by the conflict in Iran, resulting in one of the steepest pump-price increases in the country’s history [117581]. A potential record jump of up to 8 rand per liter is expected in April after Brent crude prices rocketed in a single week due to disruption near the Strait of Hormuz, a critical shipping lane that carries about 20% of the world's oil supply [95663].
Further east, drivers in Beijing formed steady queues at petrol stations ahead of China’s largest single fuel price increase so far this year, as the government adjusts retail prices based on a formula linked to international crude oil costs [109102]. In Kenya, the Energy and Petroleum Regulatory Authority sharply raised fuel prices in response to soaring costs for imported oil, a move that will immediately impact transportation, electricity, and the price of essential goods [130314].
The crisis also hit Germany, where war in Iran sent petrol prices soaring, sparking angry scenes at gas stations from Berlin to Bavaria. The price jump has frustrated drivers and inflamed debate over the country’s climate goals, though experts warn that clinging to fossil fuels will only prolong the crisis [137755].
The supply shock deepened after a drone strike set a Kuwaiti oil tanker on fire off the coast of the UAE, sending global oil prices above $115 per barrel and triggering a sell-off in Asian stock markets [116225]. Even as the United States signaled it might end its conflict with Iran and crude prices steadied, drivers saw no relief at the pump because the Strait of Hormuz shipping route remained closed, causing a supply-chain bottleneck that kept fuel costs high [116592].
In South Africa’s Nelson Mandela Bay, petroleum companies began limiting supplies and charging emergency surcharges — including up to 10 rand per liter for paraffin — due to the conflict in the Gulf region threatening local fuel stocks [108127]. The diesel price jump of R7.51 per liter and petrol hike of R3.06 immediately triggered extra fees from security companies and water suppliers, and taxi associations warned that commuter fares will rise, further straining household budgets [118106].
In Tehran, long lines formed at gas stations after reported strikes on Iran’s oil facilities, blamed by Iranian media on the U.S. and Israel. The government tightened fuel rationing, cutting the monthly gasoline quota for private vehicles from 30 to 20 liters per ration card, leaving residents waiting hours to refuel [96510].
The global price surge reversed a period of relative stability and placed fresh pressure on household budgets, with analysts warning that any further disruption could lead to continued price instability [97612].