South Africa’s petrol price has hit a record $1.82 per litre as the Iran conflict drives a sharp increase in global oil prices.
The Department of Mineral and Petroleum Resources announced the latest fuel-price adjustment on Monday.
The 95-octane petrol price in Gauteng will rise by R3.33 ($0.20) to a record R30.25 ($1.82) per litre from October 7, while diesel prices are also expected to increase as much as R3.24 per litre.
The increase reflects growing pressure from higher international crude prices and renewed concerns over global oil supplies, highlighting the fuel-price risks facing oil-dependent economies such as Nigeria.
The adjustment reflects the impact of international oil prices on South Africa’s monthly fuel-price mechanism, with crude rising to around $100 per barrel last month as the US and Iran exchanged attacks.
The development also highlights the broader economic impact of higher fuel costs across Africa, where heavy reliance on road transportation can make households and businesses particularly vulnerable to energy-price shocks.
For fuel-importing economies, higher international prices also increase foreign-exchange requirements, put pressure on domestic currencies, and raise the cost of imported goods and services.
South Africa’s latest fuel-price increase follows months of concern over the country’s exposure to global energy-market disruptions.
By August, Crude oil had risen above $90 per barrel as renewed US-Iran strikes around the Strait of Hormuz heightened concerns over global supply disruptions, signaling the potential for further energy-price pressures.
Nigeria is also feeling the impact of the global oil shock, with higher crude prices putting pressure on petrol prices and operating costs, although expanding domestic refining capacity provides some insulation from imported refined-product costs.
Nairametrics reported on September 29 that Nigerian petrol prices had risen from about N1,077–N1,205 per litre in early July to N1,395–N1,500 in September, with oil marketers attributing the pressure partly to the Middle East conflict and higher crude prices.
Earlier, on September 24, Brent crude had climbed above $106 per barrel as the Iran conflict heightened concerns over wider supply disruptions, raising the risk of higher fuel, transportation and operating costs in Nigeria.
