South African petrol prices are set to reach a record high this month after the government rolled back some temporary relief measures that had cushioned consumers against fuel-cost increases sparked by the Iran war.
The retail price of 95-octane petrol will increase to R28.06 per litre on 3 June from R26.63 per litre last month, in the country’s economic hub, Gauteng, the Department of Mineral Resources and Energy said in a statement on Monday.
The Treasury said in April that the fuel relief measures would be scaled back this month before being phased out completely in July.
The war in the Middle East, which has disrupted traffic through the Strait of Hormuz, a key shipping route for about a fifth of the world’s seaborne oil and liquefied natural gas, has sent energy costs soaring and fueled inflation in importing countries such as South Africa.
Annual inflation has drifted away from the central bank’s 3% target since the war began on 28 February and is currently at 4%.
Policymakers last week raised borrowing costs by 25 basis points to 7% to steer inflation back to 3%, and suggested more tightening may be needed if the war in Iran drags on.
Even so, consumers will receive some relief on the prices of wholesale diesel and illuminating paraffin, which will decline by as much as R3.25 per litre and R7.95 per litre, respectively.
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