Key insights
- South African gasoline prices are set to surge to near four-year highs due to rising oil prices and a weaker currency, exacerbated by the Iran war's impact on global supply chains. While the South African government is implementing temporary tax relief measures, the inflationary pressure from higher energy costs could negatively impact consumer spending and economic growth, indirectly affecting global markets.
Investing.com -- South African gasoline prices will increase to a near four-year high and wholesale diesel costs will exceed 30 rand ($1.79) per liter for the first time, as government measures failed to fully offset higher oil prices and a weaker currency linked to the Iran war.
The retail price of 95-octane gasoline will climb 14% to 26.63 rand per liter in Gauteng, the country’s economic hub, the Department of Mineral Resources and Energy said Monday. This will mark the highest level since July 2022.
The wholesale cost of diesel, for which retailers can set their own margins, will increase 24%. The price changes will take effect on May 6.
Countries from South Africa to South Korea are taking steps to reduce the impact of rising energy costs after the Iran war disrupted flows through the Strait of Hormuz, a key route for global supply.
South Africa’s National Treasury said last week it would extend a reduction in the levy it charges on gasoline for another month and eliminate the general fuel levy on diesel from May 6 until June 2. The government first announced the relief measures in late March.
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