Motorists should brace for higher fuel costs from Wednesday, February 5, as data from the Central Energy Fund (CEF) indicates significant price increases for both petrol and diesel.
The price of 95 Unleaded petrol is expected to rise by approximately 83 cents per litre, while 93 Unleaded could see an even steeper increase of 90 cents. Diesel prices are also set to climb, with 50ppm diesel projected to rise by R1.01 per litre and 500ppm diesel by R1.06 per litre.
These adjustments will push the cost of 95 Unleaded petrol to around R21.63 per litre at coastal regions and R22.46 per litre in Gauteng, while 93 Unleaded will increase to about R22.24 per litre. Meanwhile, the wholesale price of 50ppm diesel is expected to reach R18.68 per litre at the coast and R19.44 per litre inland, with retail prices being slightly higher.
Although these projections are based on January’s fuel price under-recoveries, the Department of Mineral Resources and Energy (DMRE) has yet to officially confirm the adjustments. Additional factors, such as the slate balance, could push prices even higher than anticipated.
February’s expected increases follow a series of consecutive fuel price hikes, including:
January: Increases of 12 to 19 cents per litre
December: A rise of 17 cents per litre
November: A hike of 25 cents per litre
Why Are Fuel Prices Rising?
The primary driver behind these increases is the international oil price, which has surged beyond the previous review period’s average of $72 per barrel (R1,356). In mid-January, Brent Crude peaked at $82 per barrel before settling at around $76 per barrel later in the month.
Economists predict ongoing volatility in oil prices, largely due to uncertainty surrounding Donald Trump’s protectionist trade policies and US sanctions on Russian-produced fuel.
The weaker South African rand has also contributed to the expected price hikes, adding approximately 36 cents per litre to the under-recovery. With the rand facing further pressure following Trump’s recent threats over South Africa’s land expropriation bill, analysts warn that fuel price relief is unlikely in March.
Facebook Comments