Fuel price inflation is up 20.6% year-on-year (YoY) in South Africa, with motorists paying over R4 per litre more for petrol as a result.
This is according to a new report by Investec’s chief economist, Annabel Bishop, highlighting South Africa’s fuel price inflation over the last year and its impact on the Consumer Price Index (CPI).
She noted that July’s CPI inflation dropped to 4.3% YoY, down from June’s 5.0% YoY, on a R1.96 per litre petrol price cut, which moderated the inflation outcome by -0.4%.
The country’s fuel price inflation is now at 20.6%, with July 2026’s petrol price climbing by R4.23 per litre compared to the same month last year.
The impact on diesel is even worse, with prices rising by R5.40 per litre YoY. Bishop explained that, without fuel prices, CPI inflation would only be 3.7% YoY.
This August, petrol prices fell by 52c per litre, but this is set to be undone with an 80c per litre hike on the horizon for September.
Bishop highlighted that Brent Crude oil prices have risen to approximately $91.50 per barrel this week, while the monthly average is sitting at $86.40 per barrel.
The biggest driver of CPI inflation is housing and utility costs, as rentals increased 4.1% YoY, while electricity and water increased by 8.3% and 6.4% YoY, respectively.
Stats SA also published data tracking consumer inflation today, noting that headline inflation decreased from 5.0% to 4.3%.
It said the slowdown can be attributed to three main factors: softer inflation for food & non-alcoholic beverages; lower municipal tariff increases; and a decline in fuel prices.
“Annual transport inflation cooled to 8,9% in July from 12,7% in June, mainly due to lower fuel prices,” said Stats SA.
“Petrol prices decreased by 7,1% and diesel by 11,7% between June and July, pulling the annual rate for fuel down to 20,6% from 34,3% in June.”
“Despite the monthly decline, petrol is 19,3% and diesel 28,8% more expensive than a year ago.”
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