FUEL SHOCK: Why we could not avoid petrol pump prices shooting up above R30 per litre
It’s just bad news all round with the pedal firmly on the metal for a further acceleration in inflation against the backdrop of a sluggish and slowing domestic economy.
Bad news is looming for South African motorists as petrol pump prices will soar above R30 per litre, according to official announcements. The Department of Mineral and Petroleum Resources (DMPR) reported that petrol 95 grade will increase by R3.33 per litre, reaching over R30.25 per litre, while diesel could climb as much as R3.24 per litre, taking its price over R35 per litre.
The increase is attributed to a mix of global oil prices, the rand/dollar exchange rate, and various geopolitical factors. Global tensions between the US and Iran, disruptions in oil exports from Yemen, and the Russian/Ukrainian conflict are all contributing to the situation. The rand's exchange rate against the dollar remained relatively stable, mitigating some of the impact.
Additionally, the state fuel levy increased by 4.38 cents per litre, further exacerbating the pump price hike. The South African Reserve Bank raised its near-term inflation forecasts, predicting headline inflation will likely exceed 5% later in the year, setting the stage for higher interest rates and added financial strain on South African consumers.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
