More bad news
The Central Energy Fund's interim fuel data, subject to audit, has prompted the Automobile Association (AA) to sound the alarm on forthcoming petrol, diesel, and illuminating paraffin price jumps.
The Central Energy Fund's records reveal a potential surge in petrol prices, with estimates ranging from R1.41 per litre for ULP93 and R1.45 per litre for ULP95. Meanwhile, diesel could surge by a hefty R2.60 per litre, and illuminating paraffin might increase by R2.55 per litre. Should these projections come to fruition, it will mark the highest fuel prices since December 2022.
For ULP95 users nationwide, it will now cost over R1 300 to fill up an average 55-litre fuel tank. With the more than 20% anticipated hike in diesel costs, expect the cost of items to increase over the coming months, with agriculture, retail, manufacturing, and other sectors all using diesel as their fuel.
Why is it increasing?
South Africa's fuel price fluctuations hinge predominantly on two key drivers: international oil prices and the exchange rate between the Rand and the US dollar, given crude oil's trading denomination in USD. A weaker Rand invariably corresponds to inflated fuel expenses. Recent weeks have witnessed an upswing in oil prices, partly attributable to production restrictions imposed by certain suppliers due to lacklustre demand.
The Department of Mineral Resources and Energy (DMRE) will formally disclose September's adjusted fuel prices on Monday, 4 September, with the modifications taking effect at midnight on Wednesday, 6 September.
