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Climate Politics

South Africa Extends Fuel Subsidy to Offset Soaring Oil Prices

  • Concession to cost state 4.5 billion rand in foregone revenue
  • Fuel has an almost 5% weighting in nation’s inflation basket
Gas Stations as South Africa Weighs Price Cap and Rationing
Photographer: Dwayne Senior/Bloomberg

South Africa will extend a fuel subsidy by two months to help cushion consumers and businesses against the impact of rising crude prices stemming from Russia’s war with Ukraine.

A levy on fuel will be reduced by 1.50 rand ($0.10) from June 1 to July 6, a concession that has been in place since April 6, while a 75-cents-per-liter cut will be instituted from July 7 to Aug. 2, the National Treasury and Department of Mineral Resources & Energy said in a statement on Tuesday.