Matia Samuel
Africa-Press – South-Sudan. The East African countries are staring at a fresh hike in fuel prices as Saudi Arabia opts to cut supply by one million barrels per day this month.
This comes amid rising oil demand in Africa, with the Organisation of Petroleum Exporting Countries (OPEC) projecting the demand for the commodity on the continent to increase by 4.31 percent to 4.59 million barrels per day this year from 4.4 million barrels per day in 2022.
The Organisation of the Petroleum Exporting Countries (OPEC) monthly oil market report dated June 13 says, “Globally, oil demand is forecast to grow by 2.4 million barrels per day in the second half (July-December) of this year.”
It indicated that “In 2022, oil demand in Africa increased by 4.76 percent to 4.4 million barrels per day, from 4.2 million barrels per day in 2021. The latest dynamics in the global oil outlook market add more pressure on the regional oil prices, which have been heavily impacted by local taxes.”
According to The East African Standard, Saudi Arabia, a key member of OPEC, chose to cut its oil output by one million barrels per day to cushion against weakening oil prices and an imminent supply glut in the international markets.”
“The proposal takes effect at a time when the OPEC+ members also agreed to extend their previous oil supply cuts of 3.6 million barrels per day to the end of next year and reduce overall production targets from January 2024 by a further 1.4 million.”
Last month, diesel and petrol prices hit a record high in Juba, and until now, one litre of petrol has been sold for SSP 1,100 at fuel stations across the city.
This encouraged the public taxi drivers to increase the transport fare for public transport within and outside Juba City.
Source: The City Review South Sudan
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