Tuesday, August 23, 2022

South Africa’s fuel price subsidies: a close analysis shows they don’t reduce poverty

Consumers in South Africa continue to grapple with a high cost of living, particularly with the latest rising fuel costs. In the last several months, the price for one litre of 95 octane petrol (inland) has risen by 36.4%, from R19.61 in January 2022 to R26.74 (about US$1.60) in July 2022.

A combination of factors underlies this massive increase. One of the biggest is the Russia-Ukraine conflict as the two countries are substantial players in the global commodities market. This is a concern for South Africa, which is highly dependent on imports of energy products. Read More