Photo by: Bloomberg
Petrol and diesel prices look set to be hiked in the first week of February.
The latest data from the Central Energy Fund (CEF) shows an expected increase of around 52 cents a litre for 95 unleaded petrol and 57c/l for 93 petrol. The diesel price could climb by between 22c/l and 33c/l, while the price of illuminating paraffin could increase by around 38c/l.
The fuel prices are usually adjusted on the first Wednesday of a month and determined by the price of international oil and fuel prices and the rand-dollar exchange rate.
While the rand has remained relatively firm against the dollar, the oil price has strengthened in recent weeks. After falling to below $78 a barrel in the first week of January, it's now above $86 as traders expect that demand from China will strengthen as its economy reopens.
A 52c hike in the petrol price will take Gauteng 95 unleaded to above R21.90 a litre – from R20.14 a year before.
Diesel looks on track for a rise to between R21.44 and R21.55 a litre – from R18.04 a year ago. The Gauteng diesel price has not been below R21 since March last year, after Russia's invasion of Ukraine triggered a spike in oil prices.
"Any increases to fuel prices now, at a time when South Africans are grappling with, among other issues, financial pressures and rolling blackouts, is unwelcome. We again want to urge the government to revisit the fuel pricing structure with a view to finding ways to mitigate against this and other possible increases in future," notes the Automobile Association (AA).
The AA warned Minister of Finance Enoch Godongwana against hiking fuel levies in his Budget Speech in Parliament in mid-February.
"Consumers can simply not afford any more price shocks and considering the impending 18.65% increase to electricity rates [which will take effect in April], an increase to the levies will deal a massive blow to personal finances," says the AA.
"[Increases] to the two fuel levies will be counter-productive, are ill-timed, and have disastrous outcomes for millions of people already struggling to make ends meet."