Fuel price increase will have far-reaching implications across the economy

South African motorists and businesses are bracing for a significant fuel price hike taking effect on Wednesday, May 6, following the latest adjustment announced by the Department of Mineral and Petroleum Resources which will see the price of diesel surging past the R35 per litre mark. The increases are substantial and will have far-reaching implications across the economy for both consumers and business, especially the agricultural sector which mostly runs on diesel: • Petrol (93 & 95 ULP and LRP): increase of 327.00 cents per litre • Diesel (0.05% sulphur): increase of 618.77 cents per litre (wholesale) • Diesel (0.005% sulphur): increase of 618.77 cents per litre (wholesale) • Illuminating paraffin (wholesale): increase of 422.00 cents per litre • Illuminating paraffin (SMNRP): increase of 563.00 cents per litre • LPG: increase of 507.00 cents per kilogram Echoing the sentiments expressed this week, Henry van der Merwe, Chairman of the South African Petroleum Retailers Association (SAPRA) says these increases are deeply concerning and will be felt across every sector of the economy. “A petrol increase of over R3 per litre and diesel rising by more than R6 per litre is not just a shock at the pump – it drives up transport costs, food prices and ultimately the cost of living for all South Africans.” Van der Merwe says the adjustment is largely driven by a sharp increase in global oil prices during the review period, compounded by ongoing geopolitical tensions which continue to disrupt supply chains and elevate risk premiums in international markets.

“While the rand has shown relative stability, it has not been enough to offset the surge in international product prices. The reality is that South Africa remains highly exposed to global oil market volatility, and consumers are now paying the price,” he adds.