South African drivers may soon face a substantial increase in fuel prices, with projections indicating that petrol prices could rise above R30 per litre in October. According to the Central Energy Fund (CEF), there are significant under-recoveries across various fuel types, including petrol, diesel, and illuminating paraffin.
Current data reveals an under-recovery of R3.29 per litre for 95 petrol and R3.08 for 93 petrol. If these under-recoveries are fully reflected in the pump prices, the cost of inland 95 petrol could exceed R30 per litre. Diesel prices are also predicted to increase, with a projected rise of R2.80 per litre for 0.05% diesel and R3.19 for 0.005% diesel. Illuminating paraffin is expected to see an increase of R3.57 per litre.
The anticipated surge in fuel prices is primarily driven by escalating international oil prices and a weakening rand against the US dollar. Brent crude oil has been trading near the $100-per-barrel mark, contributing to higher costs in South Africa’s fuel-price calculation.
These rising diesel prices could have broad implications, affecting sectors such as transport, agriculture, construction, and the cost of moving goods across the country. However, it is important to note that these are projected figures and may not represent the final pump prices.
The Department of Mineral and Petroleum Resources will determine the official price adjustments, taking into account changes in international oil prices, the exchange rate, and the fuel-price slate levy. The new fuel prices are set to come into effect on October 7.