South African Minister of Mineral Resources and Energy Gwede Mantashe says the Russia-Ukraine conflict threatens “already battered” economies in Africa and postpones the development Africa wants. According to Mantashe, the surge of crude oil prices through 100 U.S. dollars a barrel following the Russia-Ukraine conflict reflects in the pump price in Africa, as the continent has to import oil.
Mantashe made the statement on Tuesday at the ongoing Africa Energy Indaba Conference in Cape Town, South Africa. The three-day conference taking place alongside an energy exhibition discusses key issues impacting the African energy sector.
“When it is shooting up because of the conflict somewhere in Ukraine, we pay for the price in the pump,” Mantashe said.
“The present situation therefore is affecting us directly. Of immediate effect is the rise of the price of the crude oil that translates into severely high fuel prices of our individual countries,” he added.
Mantashe announced on Friday a rise in the fuel prices in his country, based on local and international factors, including the increase of the crude oil price, effective on March 2.
The Automobile Association of South Africa said the massive fuel price increases would have a sharp and immediate effect on the poor and a long-term impact on inflation.
It said 95 octane petrol in the inland area was expected to rise above 21 rands (about 1.4 dollars) a litre for the first time in history.