South African motorists may soon experience a significant rise in fuel prices as data from the Central Energy Fund (CEF) indicates substantial under-recoveries in petrol, diesel, and illuminating paraffin. The latest figures reveal an under-recovery of R3.29 per litre for 95 petrol and R3.08 for 93 petrol. If these increases are fully passed on to consumers, the price of inland 95 petrol could exceed R30 per litre.
The projected price hikes for October include R2.80 per litre for 0.05% diesel, R3.19 for 0.005% diesel, and R3.57 for illuminating paraffin. These increases are primarily attributed to higher international oil prices and a depreciating rand against the US dollar. Brent crude oil has been trading around the $100-per-barrel mark, significantly influencing the cost calculations for South Africa’s fuel prices.
The expected rise in diesel prices is likely to impact several sectors, including transport, agriculture, and construction, as well as the broader cost of moving goods across the country. However, it is important to note that the projected figures are not the final pump prices. The Department of Mineral and Petroleum Resources will finalize the official adjustments, with factors such as international oil prices, exchange rates, and the fuel-price slate levy potentially affecting the final outcome.
The new fuel prices are scheduled to be implemented on October 7. As these developments unfold, South African consumers and industries are advised to brace for potential financial impacts stemming from these anticipated fuel cost increases.