South African motorists are bracing for a potential surge in fuel prices this October, according to the latest data from the Central Energy Fund (CEF). The figures reveal significant under-recoveries across various fuel types, raising concerns about substantial price increases at the pump.
The CEF’s report indicates an under-recovery of R3.29 per litre for 95 petrol and R3.08 for 93 petrol. Should these figures be reflected in the final pump prices, the cost of 95 petrol could surpass R30 per litre in inland regions. In addition, diesel prices are also projected to see a rise, with an expected increase of R2.80 per litre for 0.05% diesel and R3.19 for 0.005% diesel. Illuminating paraffin could see a hike of R3.57 per litre.
Several factors are contributing to the upward pressure on fuel prices. Notably, the international oil market has seen Brent crude trading around $100 per barrel, a significant factor in South Africa’s fuel price calculations. Moreover, the South African rand’s depreciation against the US dollar has further exacerbated the situation, making it more costly to import fuel.
The anticipated rise in diesel prices is expected to have broader economic implications, potentially affecting sectors such as transport, agriculture, and construction, as well as increasing the costs associated with moving goods across the country.
It is important to note that these projected figures are not the final pump prices. The Department of Mineral and Petroleum Resources will determine the official adjustments, taking into consideration changes in international oil prices, the exchange rate, and the fuel-price slate levy.
The new fuel prices are set to take effect on October 7, leaving South Africans to await the official announcement to understand the full impact on their wallets and daily lives.