South African motorists are bracing for a potential surge in fuel prices this October, as indicated by recent data from the Central Energy Fund (CEF). The figures reveal significant under-recoveries in petrol, diesel, and illuminating paraffin, which could lead to substantial increases at the pump.
According to the CEF, the under-recovery amounts to 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 inland 95 petrol could surpass R30 per litre. Additionally, diesel prices are projected to increase by R2.80 per litre for 0.05% diesel and R3.19 for 0.005% diesel, with illuminating paraffin potentially rising by R3.57 per litre.
The primary factors contributing to these potential increases are a combination of elevated international oil prices and the depreciation of the South African rand against the US dollar. Brent crude oil has been hovering around the $100-per-barrel mark, which plays a significant role in influencing South Africa’s fuel price calculations.
These anticipated changes in diesel pricing could have broader implications for various sectors, including transportation, agriculture, and construction, potentially affecting the cost of goods movement across the country.
It is crucial to note that these projections are not final. The Department of Mineral and Petroleum Resources will make the official fuel price adjustments, taking into account fluctuations in international oil prices, exchange rates, and the fuel-price slate levy. The updated fuel prices are expected to take effect on October 7.