South Africa Raises Petrol R1.43 a Litre as $1.1 Billion Fuel Relief Unwinds
Updated
Updated · Business Insider Africa · Jun 2
South Africa Raises Petrol R1.43 a Litre as $1.1 Billion Fuel Relief Unwinds
2 articles · Updated · Business Insider Africa · Jun 2
June 3 will bring a R1.43-per-litre petrol increase in South Africa, even though international petrol product prices eased and the rand strengthened during the review period.
Government drove the rise by cutting temporary fuel levy relief by R1.50 a litre for petrol and lifting the Slate Levy to 157.74 cents from 122.70 cents to recover a R18.28 billion ($1.1 billion) shortfall.
Brent crude also climbed from $101 to $104.59 a barrel as Iran-related tensions and risks around the Strait of Hormuz stoked supply fears, adding pressure to an import-dependent economy.
Diesel users get relief instead: 0.05% sulphur diesel will fall R3.25 a litre and 0.005% diesel R2.62, potentially easing costs for freight, farming, mining and manufacturing.
The split move leaves households facing higher transport and inflation pressure while South Africa becomes more exposed to global oil shocks as state fuel support is scaled back.