MARGARE CHITIGA MABUGU, ISMAEL FOLANA and RAMOS EMMANEL MABUGU
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.
The country’s dependence on crude oil imports is directly related to the spike in domestic petroleum prices. The country is a price-taker in the international oil market. This exposes it to the volatility that arises from the imbalance between international demand and supply of crude oil.
South Africa has a fuel levy which is a component
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