The escalating fuel costs are a result of crude oil prices that have tripled in the past eight weeks, driven by ongoing voluntary output cuts by major producers Saudi Arabia and Russia.
These production cuts, extended through September, are further tightening the global supply of oil. Brent crude hit an intraday peak at $86.64, the highest since mid-April, and the global benchmark oil price rose nearly 2% for the week, following a substantial 14% gain in July.
Saudi Arabia, the second-largest oil producer, has been successful in their strategy of reducing production, announcing plans to cut another million barrels per day from September, similar to their actions in July.
The kingdom has also reduced oil exports by 1 million bpd to support higher oil prices.
These measures are aligned with their Vision 2030 plan to diversify the economy, reduce oil dependence, and create job opportunities.
Russia, the third-largest oil producer, contributed to the surge in oil prices by cutting oil production in August. Analysts anticipate further price increases due to growing oil demand in the upcoming months.