Highest Fuel Price Increase In History

It is no secret that the price of fuel is at an astronomical all-time high. By taking one glance at the global economy, it is clear that everyone is taking a major knock. Many are whispering of an impending recession within the United States of America, while countless third-world countries are scrambling to stay afloat. One thing that every country is slowly starting to feel is the ever-rising fuel price. As it stands, it’s at the highest it’s ever been. South Africa, unfortunately, has to deal with this and an ever-weakening economy.

One of the biggest perpetrators is the rising price of oil. Crude oil accounts for nearly 60% of the price of fuel.  A barrel of oil runs for just under $1130 on the market right now, meaning that every time you fill up, nearly 80 rands of the fuel cost goes towards covering the oil cost. A major contributor to these oil price spikes is sanctions placed against Russia; one of the fuel powerhouses of the planet.

Oil prices show no sign of stopping anytime soon, meaning that these sky-high prices have the potential to be devastating to consumers and industries all over the world.

Controlled refining capacity is beginning to play a significant role in the rising fuel prices. Refinement is responsible for turning crude oil into fuel and other petroleum-based products used by consumers and industries daily. The major issue is the limit placed on the amount of oil that can be refined. With Russia being out of the picture, more strain is placed on refineries across the world.

Many oil companies are struggling with a myriad of different factors. In North America, the Biden Administration has placed immense pressure on producers to pump more oil. This proves to be problematic, as oil companies do not want to jeopardise relationships with their shareholders. Coupled with a lack of skilled labour and raw materials, companies are struggling to execute the fracking production process.

Everyone is struggling. Consumers, industries and producers are all caught in an uncomfortable position. Fuel has become more than a mere necessity in today’s modern business climate, and the sheer demand has placed immense pressure on those tasked with delivering us this precious resource. While we struggle with insane fuel prices, it’s a great opportunity to step back and evaluate your current financial situation. Here, you can assess just how much you are spending on your fuel and think of ways to reduce the cost. Baby steps towards saving big time include budgeting the right amount for your fuel, driving your vehicle only when you need to and being open to the idea of carpooling/ride sharing.

While the world may appear to be going mad and your finances are wearing thin, it isn’t over just yet! You still have the ability to take back control and overcome the suffocating grip of debt. At Debtco Group, our experienced team of debt counsellors will fight to ensure your efforts pay off and your debt is crushed. If you would like to know how we can help you achieve financial freedom, contact us today.