As South Africa grapples with an affordability reset, the stark choice before households is not merely about spending less but about the very essence of what it means to survive in a landscape that is relentless in its demands.
While diesel users catch a break, petrol motorists are heading into record territory as Treasury begins unwinding its fuel levy relief, and the pain does not stop there.
Bloomberg reported that disruptions from the US-Iran war and higher fuel costs may also push the SA Reserve Bank to raise interest rates by 25 basis points to 7%. An increase would be the first since May 2023. South Africa’s inflation rate accelerated sharply in April as record fuel price increases filtered through the economy, pushing annual consumer inflation to its highest level since August 2024.
According to Statistics South Africa, annual consumer inflation rose to 4.0% in April from 3.1% in March, sooner than most economists had expected. The monthly increase in the consumer price index was 1.1%, causing fears that interest rates may increase.
Fuel was the main driver, with petrol prices up 15.2% and diesel prices up 35.4%. Statistics South Africa said the fuel index increased by 18.2% between March and April, the steepest monthly increase since the current consumer price index series began in 2008. The price of inland 93-octane petrol increased from R20.19 per litre in March to R23.25 in April. According to Statistics South Africa, this was the fifth-largest increase for that fuel grade in 50 years and the biggest this century.
