STELLALANDER-VRYBURG: South African motorists should brace for another increase in fuel prices next month, with mid-month data from the Central Energy Fund (CEF) pointing to hikes across petrol, diesel, and paraffin prices.
A weaker rand and volatile global oil prices are the main drivers behind these expected increases. The CEF’s projections indicate the following price adjustments for February:
Petrol 93: Increase of 81 cents per litre
Petrol 95: Increase of 75 cents per litre
Diesel 0.05% (wholesale):
Increase of 90 cents per litre
Diesel 0.005% (wholesale):
Increase of 88 cents per litre
Illuminating Paraffin:
Increase of 73 cents per litre
Rand/Dollar Exchange Rate:
The rand has weakened significantly in January, trading at R19.23/$ earlier this week, compared to R17.60/$ in December. This decline is attributed to global market uncertainty following the inauguration of Donald Trump as the new US president and strong US economic data. Oil prices have risen from $70 a barrel in December to nearly $80 in January. US sanctions on Russian oil and robust US economic growth have supported the price increases.
The Department of Petroleum and Mineral Resources will finalize the adjustments at the end of January, considering other factors like slate levy adjustments and retail margin changes. Fuel prices will officially change on the first Wednesday of February. Motorists are urged to prepare for the financial impact, as February’s fuel price hike is likely to strain household budgets further.
