Oil is back near the $100-a-barrel mark. After renewed fighting between the US and Iran, the oil price reached $97, a one-month high. Gareth Edwards and Francis Herd unpack why that matters for South Africans, from the inflation risk created by higher fuel costs to the possibility of further pressure on interest rates.
The episode also puts the latest move in perspective: oil was around $70 before the war and later climbed close to $120. The impact is already being felt much closer to home. Francis says petrol has risen by about R7 a litre since the war began, while diesel is up by roughly R12 a litre. South Africa has also paid an estimated R56 billion extra for imported fuel, raising a bigger question about what prolonged dependence on expensive oil costs an economy beyond the petrol pump. Gareth and Francis examine what that pressure means for households, public spending and where oil prices could go next.
Catch up on all Number of the Day episodes here: https://www.enca.com/number-day-podcast
Chapter List
(00:00) $97 Oil Is Back Near The $100 Mark
(01:35) Why Higher Oil Can Push Up Inflation And Interest Rates
(02:17) Petrol Is Up R7 And Diesel About R12 Since The War Began
(03:08) The R56 Billion Extra Cost To South Africa
(05:09) Where Could Oil Prices Go Next?
