South African drivers may soon experience a significant increase in fuel prices, with projections indicating that the cost of inland 95 petrol could exceed R30 per litre. This potential spike is based on recent data from the Central Energy Fund (CEF), which highlights substantial under-recoveries in petrol, diesel, and illuminating paraffin prices.
According to the CEF’s latest figures, there is an under-recovery of R3.29 per litre for 95 petrol and R3.08 for 93 petrol. If these figures are fully implemented, the impact on consumer pricing could be severe. Additionally, diesel prices are expected to jump, with projected increases of R2.80 per litre for 0.05% diesel and R3.19 for 0.005% diesel. The cost of illuminating paraffin could also rise by R3.57 per litre.
The upward pressure on fuel prices is primarily attributed to higher international oil prices and the depreciation of the rand against the US dollar. Brent crude oil has been trading near $100 per barrel, which significantly influences South Africa’s fuel price calculations.
The anticipated rise in diesel prices is likely to have a ripple effect, impacting various sectors such as transportation, agriculture, construction, and the broader cost of goods movement. However, it is crucial to note that these projected figures are not yet the final pump prices.
The official adjustment in fuel prices will be announced by the Department of Mineral and Petroleum Resources. This decision will consider changes in international oil prices, exchange rates, and other factors such as the fuel-price slate levy. The new fuel prices are expected to be implemented on October 7.