Pirates expected to push up petrol prices

RAPPORT



While 2024 kicked off with a welcome reduction in petrol and diesel prices, motorists should brace for pain at the pumps in the coming months.

Increased piracy activity in the Red Sea could cause a surge in fuel prices over the next few months, Rapport reported. Since 19 December 2023, Iran-backed Houthi rebels from Yemen have attacked at least 23 cargo ships in the region, in support of the Palestinian terror group Hamas.

15% of the world’s trade moves through the Red Sea because it connects with the Gulf of Aden, allowing goods to be moved faster between Europe and Asia via the Suez Canal instead of going around the African continent.

Eighteen major shipping companies, including Maersk and BP, have decided to avoid the route following the surge in attacks and to rather travel around the southern African coast.

This increases the travel time by between seven and 20 days, drastically increasing shipping costs.