How Much Is Fuel Prices In South Africa

Fuel Prices Affected By Inflation

On Thursday, the South African Reserve Bank (SARB) is anticipated to announce a further 50 basis point hike in the repo rate (ZAREPO=ECI), making it the fifth consecutive increase.

The SARB has a target inflation rate of between 3% and 6%, but it was breached in May for the first time in more than five years, and inflation has since risen.

Consumer inflation increased from 0.7% in May to 1.1% in June on a monthly basis, according to data from Stats SA.

Data released on Wednesday revealed that South Africa’s inflation spiked to a 13-year high in June, pushing further away from the central bank’s target the day before an interest rate announcement.

In contrast to analysts’ expectations for 7.2% and a reading of 6.5% in May, headline consumer inflation accelerated more quickly than expected in June, reaching 7.4% year over year.

How Much Is The Fuel Price In South Africa

According to the Department of Energy’s most recent report on fuel costs for September, both gasoline and diesel prices in South Africa have decreased significantly.

Although a price reduction of roughly R2.30 per litre was anticipated, a change to the slate levy has eaten up 30 cents of that reduction, bringing the price of gasoline down to R2.04 per litre and the price of diesel to between 46 and 56 cents per litre.

Decrease In Fuel Prices

During the time period under examination, the average foreign product prices for gasoline, diesel, and illuminating paraffin dropped.When compared to the prior period, the rand on average strengthened versus the US dollar throughout the study period.

For the 29 July to 1 September 2022 period, the average rand/US dollar exchange rate was R16.70 as opposed to R16.87 during the prior period.Due to this, the basic fuel prices for gasoline, diesel, and illuminating paraffin were reduced by 12.97 cents per liter, 15.63 cents per liter, and 15.90 cents, respectively.

The cumulative Slate balances for gasoline and diesel at the end of July 2022 were negative, totaling R13.168 billion; however, the department has approved a Slate Levy of 83.68 cents per liter (an increase of 30.66 cents per liter), which will be incorporated into the price structures for gasoline and diesel with effect from September 7, 2022.