Fuel Price Surge Hits South Africa Amid Global Oil Spike
South African motorists and households are feeling the pinch as fuel prices soar from today, following a sharp rise in global oil prices and other international market pressures. The Department of Mineral and Petroleum Resources confirmed a substantial increase across all fuel types, with diesel and illuminating paraffin seeing the steepest hikes.
Price Adjustments Effective July 2
Motorists will pay between 52 and 84 cents more per litre, depending on the fuel type:
- Petrol 93 (ULP & LRP): +55 cents/litre
- Petrol 95 (ULP & LRP): +52 cents/litre
- Diesel (0.05% sulphur): +82 cents/litre
- Diesel (0.005% sulphur): +84 cents/litre
- Illuminating Paraffin (wholesale): +67 cents/litre
- LPGas (Western Cape): +R1.90/kg
- LPGas (other regions): -57 cents/kg
These changes push inland fuel prices to some of their highest levels in months, with 95 octane petrol in Gauteng now costing approximately R21.50/litre, compared to around R21.08/litre at the coast.
Why the Increase?
The fuel hikes are driven primarily by:
- Global Oil Prices: Brent crude surged from \$63.95 to \$69.36 per barrel amid heightened tensions in the Middle East, particularly between Israel and Iran.
- International Refinery Supply Issues: Seasonal maintenance and refinery shutdowns in the U.S. have reduced global supply of refined petroleum products.
- Exchange Rate Fluctuations: The rand strengthened slightly from R18.11 to R17.90 against the dollar, softening but not negating the price surge.
- No Slate Levy: The slate levy remains at zero due to a positive balance, offering no buffer against these international cost increases.
Impact on Households
The financial burden is expected to hit consumers across the board:
- A compact car owner driving 1,000 km/month could pay R45–R50 more.
- A family sedan driving 1,500 km/month might see an increase of R75–R85.
- A SUV or bakkie clocking 2,000 km/month could face an additional R120–R150.
Households reliant on paraffin —common in lower-income areas—will face an especially difficult winter, as heating and cooking costs rise sharply.
Political Pushback
The Economic Freedom Fighters (EFF) recently launched a legal bid to halt a planned 4% fuel tax increase set for June. While the increase went ahead, the party argues it is unjust and disproportionately affects the working class. Finance Minister Enoch Godongwana defended the tax, citing a potential R3.5 billion revenue shortfall if it were cancelled.
August’s fuel pricing remains uncertain. Global oil market instability, currency volatility, and ongoing geopolitical events will continue to weigh heavily on South Africa’s fuel economy. Motorists are advised to monitor official announcements from the Department of Mineral and Petroleum Resources.