South African motorists are bracing for a potential surge in fuel prices this October, as recent data from the Central Energy Fund (CEF) reveals substantial under-recoveries for petrol, diesel, and illuminating paraffin. According to the CEF, inland 95 petrol prices could soar above R30 per litre if these increases are fully implemented at the pumps.
The data indicates an under-recovery of R3.29 per litre for 95 petrol and R3.08 for 93 petrol. Diesel prices are also expected to climb, with projected increases of R2.80 per litre for 0.05% diesel and R3.19 for 0.005% diesel. Illuminating paraffin might see a rise of R3.57 per litre. These potential hikes are attributed to escalating international oil prices and a depreciating rand against the US dollar, with Brent crude oil trading near the $100-per-barrel mark.
The expected rise in diesel prices could have a significant impact on various sectors, including transport, agriculture, and construction, as well as increase the cost of moving goods across the country. However, the projected figures remain tentative, as the final pump prices will be determined by the Department of Mineral and Petroleum Resources. Factors such as changes in international oil prices, exchange rates, and the fuel-price slate levy could influence the final adjustment.
The new fuel prices are scheduled to take effect on October 7, leaving consumers and businesses waiting to see the extent of the impact on their expenses. As South Africa grapples with these potential price increases, the situation underscores the vulnerability of domestic fuel prices to global oil market fluctuations and currency exchange rates.