Fuel Prices in South Africa: Another Hike On the Way?
Why Fuel Costs Are So High Right Now
If you’ve filled up a car lately, you’ve probably felt the shock of rising fuel prices. In April 2024, South Africa saw record-breaking increases, with diesel jumping by over R7 per liter. But here’s the worrying part: prices could go up even more in May. This is all tied to trouble in a faraway place called the Strait of Hormuz, a critical oil route. If tensions there don’t calm down soon, your wallet might feel the burn again.
What’s Causing the May Price Panic?
Experts from the Central Energy Fund (CEF), a government group that monitors energy costs, have some scary predictions. They say diesel prices might rise by more than R10 per liter in May—way above April’s hike. For gasoline (petrol), the increase could be around R3 per liter. That means if you’re paying R23 for a liter of petrol now, it could soon be R26 or more.
The Global Oil Rollercoaster
Why such a big jump? It’s all about oil prices. Right now, Brent crude oil—the global benchmark—is hovering around $111 per barrel. That’s much higher than the $94 average used to set April’s prices. The spike happened after former U.S. president Donald Trump threatened severe action against Iran if they didn’t reopen the Strait of Hormuz, a narrow waterway where a huge chunk of the world’s oil passes through. Iran reportedly rejected a ceasefire deal, insisting on ending the conflict and lifting sanctions. This standoff is making oil prices soar, and South Africa, which imports most of its oil, feels it directly.
Breaking Down the Numbers: Diesel vs. Petrol
Not all fuels are affected the same way. Diesel, used by trucks and many cars, is set for the biggest hit—possibly over R10 more per liter. Petrol (gasoline) increases might be smaller, around R3, but still painful. Here’s what you’re paying now on the coast and inland:
- 95 Unleaded Petrol: Coast: R22.53/liter | Inland: R23.36/liter
- 93 Unleaded Petrol: Inland: R23.25/liter
- 50ppm Diesel: Coast: R25.35/liter | Gauteng: R26.11/liter
What’s “Under-Recovery” and Why It Matters
You might hear terms like “under-recovery” in news reports. Simply put, it means the cost of buying oil is higher than what fuel companies charge at the pump. Right now, the monthly average under-recovery is between R4.29 (for 93 unleaded) and
