September will bring more pain at the pumps, with significant fuel price hikes on the cards. Predictions based on preliminary data provided by the Central Energy Fund (CEF) for the first ten days of August indicate that both petrol and diesel prices are expected to rise next month.
According to IOL, the most recent data snapshot from the CEF suggests that the price of 95 unleaded petrol might surge by approximately R1.26 per litre at the start of the upcoming month, while diesel costs are poised for an upward shift of around R2.50.
Also read: CT mayor says taxi strike unrest and violence could have been avoided
It’s important to note that the current daily numbers are currently negative by roughly R2 per litre for petrol and R3 for diesel. If these prevailing trends persist, the practical outcome could involve hikes exceeding R1.50 per litre for petrol.
Such an increase would propel the price of a litre of 95 unleaded petrol to approximately R23.60 along the coast and R24.33 inland. In regions where the more affordable 93 ULP is preferred, prices could rise to about R23.93.
To put the current context into perspective, petrol experienced an uptick of 37 cents at the start of the present month, while diesel saw an increase ranging between 71 and 72 cents.
Several factors are converging to drive these anticipated fuel price hikes. A combination of a weakening rand and consistently elevated global oil prices is creating a perfect storm. While there’s a glimmer of hope in the form of slightly softer Brent crude oil prices, currently at $86.25 per barrel, this still exceeds the late-month trading rate of $85.
Explore Cape Town and its surroundings with these incredible deals on cars for under 100k. Find car listings here.
The South African rand has experienced recent weakness against the US dollar. Despite economists yet to pinpoint the exact causes, the currency was trading at R18.87 to the US dollar on August 11, a notable increase from the July average of R18.28.
For the currency to exert a favourable influence on September’s fuel prices, it would need to fall below this July average.
Amid a backdrop of diminishing general inflation over recent months, the prospect of heightened fuel costs presents an unfavourable trajectory for future consumer prices.
It’s important to keep in mind that these predictions are based on unaudited data, and factors like the Slate Levy may have an impact on the final prices, causing price fluctuations.
The Department of Energy and Mineral Resources will officially announce petrol and diesel prices at the end of this month.
Also read:
British doctor shot and killed in front of family during taxi strike
Picture: Nechirwan Kavian / Unsplash