Fuel price relief turns to pain for motorists: Here's what you need to know
South Africa faces potential fuel price hikes as global oil prices rise due to Middle East tensions. Data from the Central Energy Fund indicates a shift from expected price relief to potential under-recoveries for diesel.
Why it matters
Rising fuel costs directly impact inflation and the cost of living for consumers and businesses in South Africa.
South Africa’s mid‑July fuel outlook has flipped from relief to renewed pain. Picture: iStock
South Africa’s mid‑July fuel outlook has flipped from relief to renewed pain, with petrol recoveries shrinking sharply and diesel swinging into negative territory.
The new data raises the risk of price hikes that will hit motorists and the wider economy.
Data from the Central Energy Fund (CEF) at the end of the third week in July shows that diesel price recoveries have gone into the red, with a 0.05% (500ppm) price hike on the cards.
The under-recovery has been attributed to the rising global oil price, which has shot up to around $85 a barrel as renewed tensions in the Middle East take their toll on Brent crude prices and on South Africa’s fuel price recoveries, and the war between the United States and Iran reignited earlier in the month.
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