Advocacy groups warn that higher diesel prices could place further pressure on food prices and household affordability despite the latest petrol price cut.
A 52-cent-per-litre cut in the price of petrol came into effect on Wednesday. Still, industry bodies, labour organisations and civil society groups have warned that sharp increases in diesel and illuminating paraffin are likely to keep pressure on transport costs, food prices and the budgets of low-income households.
The latest adjustments come weeks after Statistics South Africa reported that annual consumer inflation accelerated to 5% in June, the highest level in two years. While food and non-alcoholic beverage inflation slowed to 1.6%, transport inflation reached 12.7% over the year, driven largely by a 34.3% increase in fuel prices.
Statistics South Africa also reported that minibus taxi fares increased by 11.5% month-on-month, e-hailing services by 8.7% and long-distance bus fares by 8.4%.
The South African Petroleum Retailers Association (SAPRA) welcomed the reduction in petrol prices. Still, it cautioned that the broader fuel outlook remains challenging because higher diesel costs continue to place pressure on businesses and consumers.
