How much more you’re paying for petrol, electricity and food in South Africa vs a year ago
Despite food and petrol costs having increased less than inflation over the past year, this is in comparison to a relatively high base, and prices are still elevated while the cost of electricity continues to see double-digit hikes.
Stats SA’s data showed that inflation dropped from 5.1% in June to 4.6% in July, better than the Bloomberg Consensus of 4.8%.
The July inflation print is also the lowest in three years since July 2021, when the rate was also at 4.6%.
However, while food and fuel prices in South Africa have increased at rates below inflation over the past year, they remain at elevated levels due to the sustained overrun of inflation since the start of the pandemic in 2020.
The pandemic caused significant disruptions in production, transportation, and labour markets, creating bottlenecks that impacted the availability of goods.
Combined with geopolitical tensions and energy crises, these factors kept prices high, even as inflation rates have begun to stabilise.
Despite a slowdown in the pace of price increases, the cost of living remains a significant concern for South African households.
Many families are struggling to keep up with expenses, as evidenced by the unsustainable levels of household debt, as outlined by 2024 data from DebtBusters and consumer analytics and research firm Eighty20.
As noted by these experts, rising interest rates have compounded the issue, making it harder for consumers to manage loans, credit card debt, and mortgages.
Although inflationary pressures have eased slightly, the economic damage caused by these global shocks means that households continue to face high costs
Regarding electricity, while inflationary pressures have played some role in the price hike determination for the current financial year, it’s mostly a result of clawbacks and mismanagement.
Fuel prices
South African motorists are paying almost R23.11 per litre to fill up their cars in August, with prices coming down by 15 cents per litre for petrol and between 17 and 28 cents per litre for diesel.
South African motorists have experienced three consecutive months of petrol price cuts, almost reverting back to the prices at the start of the year by dropping an accumulative R2.38 since May.
This welcome relief is largely attributed to range-bound oil prices and a stronger rand/dollar exchange rate, partly a consequence of the optimism surrounding the newly established Government of National Unity.
As of August 2024, South Africans are paying only R0.28 cents per litre more than they were one year ago, which is a 1.2% increase.
Diesel motorists are paying even less, spending R0.22 cents more per litre compared to a year ago, representing a 1% increase.
These increases are far below the inflation figure of 4.6%.
However, South Africans are still paying over R20 per litre, and the country’s fuel prices have yet to recover from the global Brent Crude Oil supply shocks created by the Russia–Ukraine war.
This is evidenced in the price of petrol in August 2019 compared to today.
In 2019, the price of inland 95 unleaded petrol was R15.92 per litre, compared to R23.11 per litre today. This is a 45.2% increase in price.
Comparatively, inflation over the same period was recorded at 26.9%, meaning the price of petrol outpaced inflation by over 18%.
Food prices
Food prices follow a similar trend to fuel prices.
The latest household affordability index from the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) shows that food prices in the country have significantly improved, and year-on-year inflation has eased.
The group’s index, based on a basket of 44 essential foods most commonly bought by the majority of South African households, showed that the cost of the average household food basket decreased by R0,62 from R5,252.77 in June 2024 to R5,252.15 in July 2024.
Year-on-year, the cost of the average household food basket increased by R170.21 (3.3%) from R5,081.94 in July 2023 to R5,252.15 in July 2024.
However, much like fuel prices, the increases in the cost of food have yet to recover from the inflationary pressures experienced over the past couple of years.
In 2019, the price of the PMBEJD’s basket of 44 essential foods was R3,067.52, compared to R5,252.15 today. This is a 71.2% increase in price.
Comparatively, inflation over the same period was recorded at 26.9%, meaning the price of petrol outpaced inflation by over 44%.
The graph below shows the PMBEJD food basket prices from 2023 to 2024.
Electricity prices
Households continue to pay for incompetence in the power sector, with Eskom increasingly turning to tariff hikes to balance out its debt payments and capital expenditure problems.
Energy regulator Nersa granted Eskom an 18.65% increase in tariffs for direct customers, effective April 2024, with another municipal electricity tariff increase of 15.1% taking effect in July.
The price hikes will take the average electricity tariff in South Africa from just over R1.23 per kWh to around R1.38.
The average reflects the national average – urban customers who consume power in higher blocks will pay significantly more than this.
Additionally, StatsSA’s inflation data noted that electricity prices have risen faster over the last 15 years, seeing an average growth rate of 10.5% per year from 2009 to 2024, outpacing water tariffs (average 10.2%) and property rates (6.8%), and food.
South Africa could see Eskom ask the National Energy Regulator of South Africa (Nersa) for an electricity hike of 36.15% and 44% for 2025, which could translate to a hike of up to R2,500 a month—depending on consumption.
How much more you will be paying exactly is dependent on what type of electricity customer you are. Eskom has published its fee adjustments for 2024/25 and has included a fee calculator and comparison tool.
An urban resident using around 200 kWh per month in Gauteng would see their monthly power bill of R745 increase to R841 – an increase of 12.76%
Read: Tricks and tips to bring down your cost of living in South Africa
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