South Africans will pay over R30 per litre of diesel for the first time ever

South African fuel prices will rise to a near four-year high and wholesale diesel cost will top R30 a liter for the first time, as government interventions failed to fully offset the impact of higher oil prices and a weaker currency tied to the Iran war.

The retail price of 95-octane gasoline is set to climb 14% to R26.63 per liter in the country’s economic hub, Gauteng, the Department of Mineral Resources and Energy said in a statement on Monday.

That will be the highest level since July 2022. 

The wholesale cost of diesel, for which retailers can determine their own margin, will climb 24%. Increases are set to take effect on May 6.

Countries from South Africa to South Korea are moving to blunt the impact of surging energy costs after the Iran war disrupted flows through the Strait of Hormuz, a critical artery for global supply.

South Africa’s National Treasury last week said it would extend a reduction in the levy it charges on gasoline for another month, and scrapped the general fuel levy on diesel from May 6 until June 2.

The government first announced the relief measures in late March.

Also included in the price increases for May is a R1.23 per litre slate levy. That became necessary as the account used to balance fuel-price under- and over-recoveries with the daily fluctuations in the oil price stood at a deficit of R14.2 billion at the end of March, the department said.

The increase in fuel prices will add further pressure to inflation. While the central bank targets consumer-price growth at 3%, it has already said it expects the rate to peak at 4.3% in April, from 3.1% in March.