South Africa’s fuel prices are set for a shakeup in August. Petrol expected to come down slightly but diesel drivers might not be as lucky.
Experts are warning of a possible hike for diesel, driven by global supply issues. And that’s going to hit hard.
South Africa fuel prices
Here’s what to expect in August.
- 93 Octane petrol is set to drop by 26 cents per litre
- 95 Octane petrol will be 22 cents cheaper per litre
- Wholesale diesel (0.05%) is expected to go up by 63 cents per litre
- Wholesale diesel (0.005%) will rise by 62 cents per litre
- Illuminating paraffin is likely to increase by 27 cents per litre
Diesel in trouble
Global inventories of diesel are running low, just as demand kicks up in several parts of the world.
Summer travel in the northern hemisphere is partly to blame, but shipping disruptions and refinery issues are also pushing fuel prices up.
The pressure is already showing. The global price of diesel has jumped by more than 25% since the start of the year.
Global factors
Fuel prices in the US are largely stable, but California stands out with some of the highest in the country.
That’s partly due to state-mandated climate policies, including a cap-and-trade program and strict low-carbon fuel standards.
Governor Gavin Newsom has maintained public support by focusing on long-term climate goals, even as California drivers pay more than the national average.
Fuel prices in SA not spared
South Africa, which imports refined fuel, is not immune.
The weaker rand and rising international oil prices are combining to make things even more expensive.
Analysts warn that the upcoming diesel price hike in August could be significant, especially for businesses relying on bulk transport and logistics.
Petrol price relief (sort of)
But it’s not all bad news.
Early data from the Central Energy Fund suggests petrol prices might drop slightly next month, partly due to a stronger rand and a moderate dip in international fuel prices.
Still, any relief may be short-lived if oil prices continue to rise or the rand weakens again. And even if the petrol drop holds, it won’t offset the financial blow of soaring diesel.
Across Africa, fuel price pressures vary.
Fuel prices in Africa
Nigeria recently reinstated fuel subsidies to curb public backlash over rising costs, complicating its earlier reform efforts.
According to Afrobarometer, a large majority of the population disapproved of the government’s decision to remove fuel subsidies.
Meanwhile, Egypt has raised fuel prices in line with global oil trends, while Ghana is holding off further hikes due to inflation concerns.
Kenya has seen fluctuating pump prices, influenced by currency depreciation and regional logistics.
Overall, fuel affordability remains a challenge for many African nations, where policy choices are increasingly shaped by public sentiment and international lending conditions.
