South African petrol prices will hit record highs as an oil-price shock from the
Iran war feeds into the government’s monthly fuel-price adjustments. Gauteng
95-octane petrol will rise 3.33 rand per litre (about $0.20) to 30.25 rand/litre
on Oct. 7, a 12% increase, the Department of Mineral Resources and Energy said
in an emailed statement. Wholesale diesel will increase by up to 3.24
rand/litre. The move adds to upward pressure on global fuel prices and will
disproportionately affect African households given high reliance on road
transport. Fuel-driven price rises have pushed South African CPI to 4.4% since
the war began in late February, prompting two rate hikes by the South African
Reserve Bank so far this year, and could increase pressure on the bank to
tighten further to defend its 3% inflation target.
