Kuwait Oil Company CEO says global refining capacity is unlikely to fill the gap left by Gulf production shutdowns

South Africa's gasoline prices are set to reach a historic high as the latest wave of oil price shocks triggered by the Iran war begins to affect government-adjusted monthly fuel prices. According to an email statement from the South African Department of Mineral Resources and Energy, the price of 95-octane gasoline in Gauteng province will increase by 3.33 rand (0.20 dollars) per liter as of October 7. This price hike, which represents a 12% increase, will push gasoline prices up to a record-high 30.25 rand per liter. Wholesale diesel prices are also set to rise by up to 3.24 rand per liter. This development signals mounting global fuel price pressures, with African households likely to feel the impact more acutely. Due to the continent's reliance on road transport and insufficient public transportation, transportation expenses make up a higher proportion of household income in Africa. The rise in fuel prices could also increase pressure on the South African Reserve Bank to hike interest rates again in order to defend its 3% inflation target. Since the outbreak of the war at the end of February, sustained increases in fuel prices have pushed South Africa’s consumer price inflation up to 4.4%, prompting the central bank to raise interest rates twice so far this year.

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