While the official petrol and diesel prices are slated to be unveiled by the Department of Mineral Resources and Energy next week, just ahead of the adjustments coming into play on Wednesday, September 06, preliminary data from the Central Energy Fund (CEF) for the end of the month gives us a strong preview of what’s in store.
According to the CEF data, the substantial under-recovery on petrol indicates an increase of approximately R1.65 for 95 Unleaded and R1.60 for 93 Unleaded.
Meanwhile, diesel prices appear set for hikes ranging from R2.76 (50ppm) to R2.85 (500ppm).
It’s worth noting that while this unaudited data is usually a reliable indicator of forthcoming price changes, the final prices could still vary, especially when accounting for factors like the Slate Levy, which compensates fuel companies for oil price fluctuations during the month.
As it currently stands, assuming these predictions hold true, South African drivers will be shelling out R23.76 for a liter of 95 Unleaded petrol at coastal areas and R24.48 in inland regions come September.
Read | Choosing the Right Truck Spec | 6×4 vs 6×2 Drive | Pros and Cons
The more affordable 93 Unleaded is expected to increase to around R24.03.
The projected adjustments in diesel prices would elevate the wholesale cost of 500ppm to approximately R22.34 at coastal locations and R23.06 inland, with 50ppm reaching respective prices of R22.58 and R23.29.
It’s important to keep in mind that these figures exclude retail margins, which vary between different outlets, as diesel is deregulated.
Generally, these margins tend to hover around the R2 mark. Consequently, a liter of 50ppm diesel is likely to set you back roughly R24.58 at the coast and R25.30 inland starting in September.
As mentioned earlier, despite South Africa’s favorable general inflation trend, the significantly higher diesel prices could potentially counteract this progress, resulting in increased costs at the checkout, as cautioned by the Automobile Association (AA).
The AA emphasized, “Motorists will certainly feel the pinch in terms of higher prices at the pumps, but consumers across the board can expect higher prices for all goods and services due to these hikes.”
The anticipated September price hikes can be largely attributed to the elevated international oil prices, with the AA indicating that they contribute between 80% and 88% to the projected increases.
Stay tuned for the official fuel price announcement early next week.
