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At the onset of the Corona virus pandemic crude oil prices plummeted. Since the initial economic blunting from the virus in 2020, demand for fuel has risen steadily as business activity has increased. Due to delays in restoring drilling capacity, higher transportation costs, and sluggish production increases, supply has not recovered in sync with demand. As a direct result, prices of crude oil have risen consistently over the last 6 months. In short, petrol prices were already surging pre the Russian conflict with Ukraine.

 

Global fuel prices are now set to increase further pending the United States ban on Russian oil.  Global demand will now increase as global supply constricts. It is hard to predict if OPEC and Russia will increase productivity and therefore supply or, allow crude price to continue to climb to great heights per barrel. Nonetheless in short term fuel prices have increased globally.

 

In our domestic market industry stakeholders effected by this immediate rise in costs have reacted quickly to offset price rises and increased fuel surcharges accordingly.

 

While we have absorbed the additional costs for a week we will have to pass on these costs to importers per shipment.

 

Shipments arriving on or after 17th March 2022 will now be affected by a 22% fuel surcharge, a rise from previous levels ranging between 15 – 17%.

 

Globally,  the fuel surcharges have climbed immediately to 25%, however we will endeavour to keep them as low as the market allows in our domestic market.

 

Should you have any queries relating to this subject matter , please contact our office directly.

 

 

 

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