South African motorists should brace for a significant increase in fuel prices this week, with both petrol and diesel set to rise sharply from Wednesday, July 3, according to the latest figures from the Central Energy Fund (CEF).
The upcoming hike follows four months of price declines and reflects the combined impact of global oil market volatility, Middle East tensions, and a weaker rand.
Consumers are advised to fill up before midnight Tuesday to avoid higher pump prices.
Petrol prices will increase by over 50 cents per litre, while diesel users will face even sharper rises.
Expected Fuel Price Adjustments (From July 3):
-Petrol 93 +52c/litre
-Petrol 95 +55c/litre
-Diesel 0.05% +84c/litre
-Diesel 0.005% +82c/litre
The diesel hike is expected to ripple through the economy. As the primary fuel for freight, taxis, and agriculture, diesel’s unregulated retail pricing means final costs will vary – but logistics providers and farmers are likely to pass on the added expense.
This could result in higher prices for food and essential goods in the coming weeks.
The primary driver behind the increase is the recent military escalation in the Middle East. On 13 June, Israel launched missile strikes on Iran in a bid to disrupt its nuclear program.
Iran retaliated, targeting Tel Aviv, followed by further escalations involving U.S. airstrikes and Iranian attacks on American bases in Qatar.
Though a ceasefire has since been reached and oil has returned to pre-conflict levels of $68 per barrel, the market is still recovering from the supply shock.
At the height of the conflict, analysts feared oil prices could soar as high as $130 per barrel.
During the conflict, the South African rand weakened against the US dollar, briefly spiking fuel import costs.
Though the currency has since stabilized to around R17.78/USD, it remains a key factor in the pricing equation.
In addition, recent increases to government fuel levies – 16 cents per litre for petrol and 15 cents for diesel – continue to place upward pressure on domestic fuel prices.
This mid-winter hike is expected to strain household budgets and business transport costs. While short-term relief may depend on currency strength and global oil stability, further geopolitical tensions could quickly reverse any gains.
