South African authorities to lower fuel prices at the pump from Wednesday

A worker fills up a car at a Shell gas station in Johannesburg, South Africa, March 16, 2022. REUTERS/Siphiwe Sibeko

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JOHANNESBURG, July 31 (Reuters) – South Africa will reduce the price of fuel at the pump from the middle of next week in a bid to ease the burden on consumers from soaring fuel prices. energy since the war in Ukraine, which pushed inflation above the upper limit of the central bank’s target band.

Energy Minister Gwede Mantashe announced the measures overnight, which include lowering the price of petrol by 1.32 rand ($0.08) per liter – to 25.42 rand and 24, R99, for 95 and 93 octane petrol, respectively, from Wednesday.

The price of diesel, used mainly by farmers, transport vehicles and emergency generators, will also be reduced, by 88 cents for high sulfur diesel and 91 cents for low sulfur diesel, according to the press release.

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Fuel prices in South Africa are adjusted on a monthly basis to reflect factors such as the strength of the rand and world oil prices.

Inflation hit a 13-year high of 7.4% in June, and the central bank expects the 2022 figure to be around 6.5%, above the upper end of its target range between 3% and 6%. Read more

On July 21, the bank made its largest interest rate hike in two decades in an attempt to rein in rising prices, raising the key rate by 75 basis points to 5.5%.

($1 = R16.6389)

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Reporting by Tim Cocks Editing by Tomasz Janowski

Our standards: The Thomson Reuters Trust Principles.

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