Global Oil Chaos Smashes Drivers Worldwide as Prices Explode in Dozens of Countries
Drivers across Africa, Asia, and beyond are facing brutal fuel price hikes as global oil markets spiral out of control, with record increases hitting South Africa, Kenya, India, and China this week.
In South Africa, motorists rushed to gas stations before a massive price hike took effect at midnight, marking the country's most expensive fuel ever [117884]. Analysts had predicted a potential 8 Rand per litre increase due to soaring global crude costs [95663]. Despite a government tax cut of 3 rand per litre meant to soften the blow, drivers are still facing one of the steepest pump price jumps in history [117581]. The crisis has gone so far that petroleum companies in Nelson Mandela Bay have started limiting fuel supplies and slapping on emergency surcharges, ranging from 5 cents per litre for petrol to around 10 Rand per litre for paraffin, blaming the ongoing Gulf conflict for threatening local stocks [108127].
In Kenya, fuel prices have jumped sharply after the latest monthly review. Super petrol rose by 16.65 shillings per litre, while diesel surged by 46.29 shillings. A Kenyan lawmaker is now demanding cuts to VAT and other levies to ease the burden on consumers, as prices hit 214.25 shillings for petrol and 242.92 for diesel in Nairobi [150720]. The energy regulator said global oil price increases forced the decision, and the jump will directly impact transport, electricity, and the cost of essential goods [130314].
Indian fuel retailers raised petrol and diesel prices for the first time in four years, with analysts warning this could be the first of several hikes as economic pressures from the conflict in Iran continue to mount [150112].
In China, drivers raced to pumps ahead of the country's biggest fuel price jump of 2024, with long queues forming at stations in Beijing before the midnight adjustment [109102].
The global spike is linked to disruptions in oil supplies from the Middle East and attacks on energy infrastructure. A Ukrainian drone strike set fire to distillation units at a key Rosneft refinery in Ryazan, which supplies gasoline and diesel to the Moscow region [150096]. In Iran, long lines have formed at gas stations in Tehran after reported strikes on oil facilities, which have tightened the national fuel rationing system and cut the monthly gasoline quota for private vehicles from 30 litres to 20 litres per ration card [96510]. In Benin, queues are growing at fuel stations as new government rates take effect [143665].
Industry analysts warn that costs are unlikely to fall soon, as global political tensions and the fragile nature of oil supplies keep the market on edge [124783]. A sudden surge in global crude oil costs has delivered a severe blow to drivers worldwide, with the average price of gasoline in the United States recording its largest weekly increase since Russia's invasion of Ukraine in 2022 [97612].