JOHANNESBURG, May 4 – South Africa is set for a sharp increase in fuel prices, with gasoline nearing a four-year high and diesel costs reaching record levels, as global oil market disruptions continue to filter through the economy.
The retail price of 95-octane gasoline will rise 14% to 26.63 rand per litre in Gauteng, the country’s economic hub, according to the Department of Mineral Resources and Energy. That marks the highest level since July 2022.
Wholesale diesel prices, which are not capped at the pump, are set to climb 24%, pushing costs above 30 rand per litre for the first time. The new pricing structure takes effect on May 6.
The increases come despite government efforts to cushion consumers. National Treasury recently extended a temporary reduction in gasoline levies and removed the general fuel levy on diesel for the period between May 6 and June 2.
However, those measures have been insufficient to fully offset the impact of rising global oil prices and a weaker domestic currency, both linked to ongoing geopolitical tensions in the Middle East. Disruptions to supply routes through the Strait of Hormuz, a critical global energy corridor, have driven up costs worldwide.
Additional upward pressure is coming from domestic pricing mechanisms. A 1.23 rand-per-litre slate levy has been introduced to address a deficit of 14.2 billion rand in the account used to smooth fuel price fluctuations, the department said.
The surge in fuel costs is expected to intensify inflationary pressures. The South African Reserve Bank, which targets inflation at 3%, has already projected that price growth could peak at 4.3% in April, up from 3.1% the previous month.
The latest adjustments place South Africa among a growing number of economies responding to higher energy costs, as countries seek to balance fiscal support with rising global price pressures.
