South Africa Raises Fuel Prices, With Diesel Set to Top 30 Rand per Litre

Mintesinot Niggusie

Wholesale diesel prices in South Africa are set to climb by 24 percent, pushing costs above 30 rand per litre for the first time, in a move that underscores renewed pressure across the country’s fuel market. The new pricing structure takes effect on May 6.

The Department of Mineral Resources and Energy said the retail price of 95-octane petrol will rise by 14 percent to 26.63 rand per litre in Gauteng, the country’s economic hub, marking its highest level since July 2022 and approaching a four-year peak.

The adjustments come despite fiscal measures aimed at limiting the pass-through to consumers. National Treasury recently extended a temporary reduction in gasoline levies and suspended the general fuel levy on diesel for the period between May 6 and June 2.

However, these interventions have been outweighed by rising global oil prices and a weaker rand, both influenced by ongoing geopolitical tensions in the Middle East. Disruptions along critical maritime routes, including the Strait of Hormuz, have added further strain to international energy flows.

Additional domestic pressure has emerged through pricing mechanisms designed to stabilise the fuel market. A slate levy of 1.23 rand per litre has been introduced to recover a 14.2 billion rand deficit in the fuel price smoothing account, the department said.

The latest increases are expected to feed into broader inflation dynamics. The South African Reserve Bank, which targets inflation at 3 percent, has projected that price growth could peak at 4.3 percent in April, up from 3.1 percent in the previous month.