In South Africa, motorists are bracing for a potential rise in fuel prices come September. Recent data from the Central Energy Fund (CEF) suggests an increase in costs for petrol, diesel, and illuminating paraffin. Specifically, the price for 93 petrol could climb by about 83 cents per litre, while 95 petrol might see a 94-cent increase. Diesel prices are expected to surge more significantly, with 0.05% diesel potentially rising by R2.87 per litre and 0.005% diesel by R3.07. Illuminating paraffin is projected to increase by around R2.24 per litre.
The anticipated hike in diesel prices is particularly concerning, given diesel’s critical role in industries such as freight, agriculture, construction, and mining. A substantial rise in diesel costs could lead to higher transportation and operational expenses, thereby exerting upward pressure on food and consumer prices. This development is crucial as these industries form the backbone of the country’s economy and any cost increase could ripple through the supply chain.
While the prospect of rising fuel costs remains, the outlook has somewhat improved since earlier in August. At that time, petrol was expected to increase by about R1 per litre, and diesel was facing potential hikes close to R5 per litre. Despite this relative improvement, the latest figures still indicate a challenging environment with fuel costs under substantial upward pressure.
The primary factors affecting South Africa’s monthly fuel-price adjustments continue to be international oil prices and the rand-dollar exchange rate. Although the rand has shown resilience, providing some relief, higher global petroleum prices persist in driving fuel under-recoveries. These dynamics underscore the complex interplay of local and international factors in determining fuel prices.
It is important to note that the CEF’s figures are provisional and subject to change before the final adjustment is announced. The new fuel prices are scheduled to take effect from 1 September 2026, leaving some time for developments that might influence the final pricing decision.