South Africa hit by record diesel price hikes despite fuel levy cut
Diesel rose 7.51 rand a liter, the highest on record, as shortages forced some stations to turn motorists away and ration fuel.
- On Tuesday, South African motorists flocked to gas stations ahead of record fuel hikes, despite Finance Minister Enoch Godongwana announcing a 3 rand per liter levy decrease to cushion the price shock.
- Godongwana attributed the domestic price pressure to the ongoing conflict in the Middle East, where the war in Iran continues to destabilize global energy markets and inflate local fuel costs.
- Diesel prices will rise by a record 7.51 rand , while gasoline increases by 3.06 rand ; the government's levy reduction will cost 6 billion rand in lost revenue.
- Fuel shortages disrupted public bus services in Pretoria on Tuesday, as some stations rationed purchases between 30 and 50 liters per vehicle while others ran completely dry.
- Solidarity Research Institute economic researcher Theuns Du Buisson warned that record increases threaten logistics and transportation costs, likely triggering inflation that will disproportionately affect low-income households in coming months.
16 Articles
16 Articles
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South African motorists came to gas stations en masse on Tuesday, before record increases in fuel prices came into effect at midnight, while the world continues to feel the effects of the war in Iran that has affected world oil prices and its derivatives.
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