South African motorists are bracing for a potential hike in fuel prices this October, as indicated by the latest data from the Central Energy Fund (CEF). The figures reveal significant under-recoveries across various fuel types, suggesting that the price of inland 95 petrol could exceed R30 per litre if these increases are fully realized at the pump.
The CEF data shows an under-recovery of R3.29 per litre for 95 petrol and R3.08 for 93 petrol. Additionally, projections for October suggest increases of R2.80 per litre for 0.05% diesel, R3.19 for 0.005% diesel, and R3.57 for illuminating paraffin. These potential price hikes are attributed mainly to the rising international oil prices and the weakening of the rand against the US dollar, with Brent crude recently trading around $100 per barrel.
Higher diesel prices could have a broad impact, affecting transportation, agriculture, and construction sectors, as well as the cost of moving goods. However, the projected figures are not yet the final pump prices, as the Department of Mineral and Petroleum Resources will determine the official adjustments. Changes in international oil prices, the exchange rate, and the fuel-price slate levy could influence the final amounts.
The new fuel prices are expected to take effect on October 7, leaving South African consumers and businesses to monitor these developments closely in anticipation of their potential economic impact.