South African motorists could soon face a significant hike in fuel prices, potentially seeing costs soar above R30 per litre. This warning comes as the Central Energy Fund’s (CEF) latest data reveals considerable under-recoveries across petrol, diesel, and illuminating paraffin prices. The figures show an under-recovery of R3.29 per litre for 95 petrol and R3.08 for 93 petrol, which, if fully passed on to consumers, could push inland 95 petrol prices over the R30 mark.
The anticipated price surges are not limited to petrol. Diesel, a crucial fuel for transport, agriculture, and construction, is also expected to see a sharp increase. The projected October hikes include R2.80 per litre for 0.05% diesel and R3.19 for 0.005% diesel. Illuminating paraffin, often used for heating and lighting in many households, could rise by R3.57 per litre.
These potential increases are largely attributed to the rising international oil prices and a weakening of the South African rand against the US dollar. Brent crude oil has been trading around the $100-per-barrel level, which has inflated the costs included in South Africa’s fuel-price calculations.
While these projections outline the potential cost increases, the final pump prices will be determined by the Department of Mineral and Petroleum Resources. Factors such as international oil price fluctuations, changes in the exchange rate, and the fuel-price slate levy could influence the official adjustment. The new prices are expected to take effect on October 7.
The looming rise in fuel costs poses significant concerns for various economic sectors dependent on affordable fuel, potentially impacting the transportation of goods and the broader economic landscape. As the country braces for these changes, the adjustments will be closely watched by consumers and businesses alike.