Oil Producing Countries to Hold Production, Petrol Prices Likely to Hike More

Petrol prices and global inflation are likely to tick higher again as the OPEC+ group of oil-producing countries will hold production at nine million barrels a day for the rest of the year.

In Kampala, a liter of Diesel was at some pump station nearing 4,800 Shillings while petrol was by the beginning of the week being sold at close to 5,300 Shillings.

This is the stark warning from Nigel Green, the founder of deVere Group, one of the world’s largest independent financial advisory, asset management, and fintech organizations, as Saudi Arabia announced it would maintain its production cut of one million barrels a day until December.

This maintains the country’s output at nine million barrels a day, the lowest amount in several years. Russia has also confirmed it would maintain its own cutback of 300,000 barrels a day for the same period.

When fuel prices rise, consumers may cut back on discretionary spending, which can impact economic activity, influence inflation dynamics, especially in sectors heavily dependent on consumer demand.

The deVere Group founder concludes: “The decision by the group of oil-producing countries will further exacerbate the cost-of-living and cost-of-business crisis as inflation is given another global boost, and the hard hit countries are always the developing countries where Uganda falls.