South African motorists could be facing a painful start to September, with the latest mid-month data pointing to sharp increases in fuel prices.
Figures from the Central Energy Fund show that petrol is currently showing an under-recovery of between 63 and 74 cents per litre, while diesel is facing an even bigger jump of between R2.73 and R2.89 per litre.
Based on the current figures, 93 Unleaded Petrol could rise by around 63 cents a litre, while 95 Unleaded Petrol could increase by approximately 74 cents. Diesel 0.05% could see an increase of about R2.73 per litre, while Diesel 0.005% could rise by R2.89.
The pressure is also being felt in the illuminating paraffin market, which is currently showing an under-recovery of about R2.15 per litre.
The latest figures come as international oil markets remain under pressure following renewed conflict in the Middle East. Concerns over global oil and diesel supplies have added further pressure to fuel prices.
However, motorists could still see some movement in the figures before the final adjustment is announced, as the CEF’s mid-month data only provides an indication of where prices are heading.
A stronger rand and fluctuations in international oil prices could help ease some of the pressure. Economists have pointed to the rand’s recent performance against the US dollar, as well as oil prices remaining below $90 a barrel, as factors that could limit the size of the increases.
With the month only halfway through, motorists will be watching the international oil market and the rand closely. Unless conditions improve significantly before the end of August, however, fuel price increases appear increasingly likely when the September adjustment takes effect.
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