CAPE TOWN, Mar. 1 — The Russia-Ukraine conflict threatens “already battered” economies in Africa and postpones the development Africa wants, South African Minister of Mineral Resources and Energy Gwede Mantashe said Tuesday.
The surge of crude oil prices through 100 U.S. dollars a barrel following the Russia-Ukraine conflict reflects the pump price in Africa, as the continent has to import oil, Mantashe said at the ongoing Africa Energy Indaba Conference in Cape Town, legislative capital of 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 will have a sharp and immediate effect on the poor and a long-term impact on inflation, with 95 octane petrol in the inland area expected to rise above 21 rands (about 1.4 dollars) a liter for the first time in history. – XINHUA