South Africa faces significant fuel price hike with far-reaching economic implications
via The Citizen17 min read
South African motorists and businesses are preparing for a substantial fuel price increase effective Wednesday, May 6, as announced by the Department of Mineral and Petroleum Resources. Diesel prices are set to exceed R35 per litre. The increases include petrol 93 & 95 ULP and LRP by 327.00 cents per litre, diesel 0.05% and 0.005% sulphur by 618.77 cents per litre wholesale, illuminating paraffin wholesale by 422.00 cents per litre, illuminating paraffin SMNRP by 563.00 cents per litre, and LPG by 507.00 cents per kilogram. Henry van der Merwe, Chairman of the South African Petroleum Retailers Association SAPRA, expressed deep concern, stating that these increases will impact every sector of the economy, driving up transport costs, food prices, and the overall cost of living. He attributed the adjustment to a sharp rise in global oil prices and ongoing geopolitical tensions disrupting supply chains. While the rand has shown some stability, it has not been enough to offset the surge in international product prices, leaving South Africa vulnerable to global oil market volatility. The knock-on effects are expected to strain households and businesses, particularly in transport, logistics, agriculture, and small enterprise sectors. Van der Merwe noted that temporary fuel levy relief, while providing some cushioning, is unlikely to fully absorb the scale of the increases and is temporary, with levies returning to previous levels from July 1. This situation is expected to intensify
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