Drivers in 4 Nations Race to Pumps as Fuel Prices Explode
Drivers across Africa, Asia, and the Middle East are scrambling to fill their tanks as fuel prices surge to record highs, driven by the ongoing conflict in Iran and tight global oil supplies. In South Africa, Kenya, India, and China, prices have jumped sharply in recent days, with governments and analysts warning of further increases.
South African motorists rushed to gas stations on Tuesday ahead of a midnight price hike expected to be the biggest in the country's history, fueled by disruptions linked to the war in Iran [117884]. Despite a government tax cut of 3 rand per litre, the increase remains one of the steepest ever recorded [117581]. In Nelson Mandela Bay, petroleum companies have begun limiting fuel supplies and charging emergency surcharges of up to 10 rand per litre for paraffin, blaming the Gulf conflict [108127]. Analysts warn of a potential record 8 rand per litre hike in April [95663].
In Kenya, the Energy and Petroleum Regulatory Authority (EPRA) has sharply increased fuel prices, citing soaring costs for imported oil [130314]. A lawmaker is now demanding tax reductions after super petrol rose by 16.65 shillings per litre and diesel surged by 46.29 shillings, bringing prices in Nairobi to 214.25 shillings and 242.92 shillings respectively [150720].
India raised petrol and diesel prices for the first time in four years by about 2.5 rupees per litre, with analysts warning this could be the first of several hikes as the Iran conflict pushes international oil prices higher [150112]. The country imports more than 80% of its crude oil, and further increases may follow if the conflict disrupts tanker routes in the Persian Gulf [149969].
In China, a steady stream of cars crowded a Beijing petrol station on Monday afternoon as drivers rushed to refuel before a major price increase at midnight—the largest single hike so far in 2024 [109102]. The government adjusts fuel prices regularly based on a formula linked to international crude costs.
Long queues have also formed at gas stations in Benin, where motorists are struggling with new government fuel rates that took effect at the start of May [143665]. In Iran's capital Tehran, long lines have appeared after reported strikes on oil facilities, and officials have cut the monthly gasoline quota from 30 liters to 20 liters per ration card, leaving residents waiting hours to refuel [96510].
Industry analysts warn that fuel costs are unlikely to fall soon, as higher oil prices are partly due to concerns over the stability of a proposed Gaza ceasefire—markets fear that if the ceasefire fails, regional conflict could disrupt oil supplies from the Middle East [124783].