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If you thought the fight between Israel and Iran had no bearing on your life, think again.
Petrol pumps are pictured at a filling station in Melville on 20 January 2021. Picture: Tracy Lee Stark
Despite being on the other side of the world, the ongoing conflict between Israel and Iran could soon see you paying more at the petrol pumps in South Africa.
Israel unleashed a barrage of missiles in a “preemptive strike” on Iran on Friday amid concerns over Tehran’s nuclear programme.
The United Nations’ nuclear watchdog, the International Atomic Energy Agency (IAEA), on Thursday found Iran was not complying with nuclear obligations and flagged that country’s stockpile of enriched uranium. The uranium could be used to fuel nuclear reactors or, more sinisterly, for nuclear weapons. Iran labelled the sanctions as purely political.
While countries around the world slammed Iran, Israel went one step further and bombed the country. A move that US President Donald Trump reportedly admitted to knowing about beforehand.
What followed were three days of missile strikes from both sides, and fears of an escalation that could destabilise the Middle East region.
But its effects will be felt worldwide, especially if Iran acts on threats to shut the Strait of Hormuz.
Why is the Strait of Hormuz so important?
The narrow passage off the south of the country is a key shipping route between the Persian Gulf and Arabian Sea. According to the US Energy Information Administration, the Strait transports around 20% of the world’s oil.
Closing the waterway would force oil producers to find other routes at an increased cost. This would lead to soaring prices and other countries getting involved, possibly expanding the war.
“Chokepoints [such as the Strait of Hormuz] are narrow channels along widely used global sea routes that are critical to global energy security. The inability of oil to transit a major chokepoint, even temporarily, can create substantial supply delays and raise shipping costs, increasing world energy prices,” the administration explained.
“Although most chokepoints can be circumvented by using other routes, which often add significantly to transit time, some chokepoints have no practical alternatives.”
In 2023, it noted that only Saudi Arabia and the United Arab Emirates (UAE) operate pipelines that can bypass the Strait of Hormuz.
Oil prices will see you paying more for petrol
The fuel price in South Africa is dictated, in large part, by global oil prices. An increase in the cost of buying will lead to a hike in the price of petrol and diesel.
Earlier this month, 93 and 95 petrol prices dropped by 5 cents per litre, while diesel prices decreased by 36.9 cents per litre.
That means a litre of 93 unleaded petrol currently costs R21.24. 95 unleaded costs R21.35 a litre inland and R20.56 a litre at the coast.
The wholesale price of 0.05% diesel now costs R18.57 per litre inland and R17.81 at the coast. 0.005% costs R18.53 inland and R17.70 at the coast.
There would have been more savings at the pump if Finance Minister Enoch Godongwana had not increased the general fuel levy in his latest budget.
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Impact of oil prices on the last petrol price review
DMRE spokesperson Robert Maake said the average Brent Crude oil price decreased from 66.40 US Dollars (USD) to 63.95 USD during the period under review.
“The main contributing factors are the continued global trade uncertainty, lower global crude oil demand outlook, as well as the OPEC+ announcement of planned production increase in June 2025 and possibly in July 2025,” he said earlier this month.
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