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South Africans Face Fuel Price Surge as Levy Concession Ends

  • South African motorists are set for a 16% price hike in June
  • Government doesn’t plan to extend 2-month cut in gasoline levy

South Africans face record high gasoline prices in June as a subsidy to help motorists counter the impact of high crude costs exacerbated by Russia’s invasion of Ukraine comes to an end.

With a weighting of almost 5% in South Africa’s inflation basket, the expected jump in pump costs is likely to push the gauge above the central bank’s target range and spur price hikes across the economy. The government reduced the levy on fuel by 40% in April and May, helping to keep a lid on prices.