Petrol Pain: 50-litre tank could cost R160 more from Wednesday
JOHANNESBURG — Gauteng motorists are facing petrol above R30 a litre for the first time when October’s fuel price adjustment takes effect on Wednesday, with the latest projections pointing to increases of more than R3 a litre for petrol and as much as R3.15 for diesel.
Month-end data from the Central Energy Fund points to an increase of about R3.08 a litre for 93 unleaded petrol and R3.29 for 95 unleaded, while diesel is showing increases of about R2.80 for 500ppm and R3.15 for 50ppm.
If those projections are reflected in the final adjustment, 95 unleaded could rise to around R30.10 a litre in Gauteng, while 93 unleaded would move to approximately R29.94. At the coast, 95 unleaded is expected to reach about R29.23.
Diesel users face an even heavier increase. The wholesale price of 500ppm diesel is projected to rise above R31 a litre inland, while the retail price of 50ppm diesel could exceed R35 in some inland areas once retail margins are included.
The October increase follows an already expensive September adjustment, when both grades of petrol increased by R1.34 a litre and diesel rose by between R2.94 and R3.15.
For a motorist filling a 50-litre petrol tank, another R3.20-a-litre increase would add about R160 to a single fill-up. Compared with prices before the September increases, the cumulative additional cost has become considerably larger for households that refill several times a month.
The pressure has largely come from international petroleum prices. Brent crude climbed as high as $108 a barrel during September amid instability in the Middle East and concerns over oil supply routes, including the Strait of Hormuz. Although oil subsequently moved below $100 at points, the elevated prices accumulated during the fuel-price review period have produced substantial under-recoveries in South Africa.
The rand-dollar exchange rate is the other major component used in calculating local fuel prices, while taxes, levies and distribution costs contribute to the final amount motorists pay.
Government provided temporary fuel levy relief earlier this year as international oil prices surged, but there has so far been no indication that similar intervention will accompany October’s increase. Mineral and Petroleum Resources Minister Gwede Mantashe said last month there were no immediate plans for another temporary relief measure.
The effect will extend beyond motorists. South Africa relies heavily on road freight to move food and other goods, while diesel is widely used in agriculture, construction, mining and logistics. Sustained increases therefore feed into operating and transport costs that can eventually reach consumers.
The final October fuel prices still have to be formally announced by the Department of Mineral and Petroleum Resources. The adjustment is scheduled to take effect on Wednesday, 7 October.
Anyone with additional information can contact the press desk at press@townpress.co.za or drop a tip on our annonymous platform https://tips.townpress.co.za/