The Government faces the prospect of having to change its crude oil forecast in the budget because the price of crude continues to soar as a result of the war in the Middle East.
The government projected annual average crude oil prices of US$62 per barrel during the next four years but the price of Brent crude rose to US$108.52 per barrel and the price of the West Texas Intermediate crude increasing to US$98.23 per barrel when the spot market closed in New York and London on Friday.
Higher crude oil prices will lead to higher levels of cost, increased inflation, higher interest rates and slower global GDP growth.