South African motorists are facing a devastating fuel price shock, with record increases set to roll out on 1 April.
Business Tech reports that the surge in prices, which may reach R10 per litre for diesel and nearly R6 for petrol, has sparked fears of a national crisis as consumer and business burdens mount in the face of escalating fuel costs.
Recent data from the Central Energy Fund highlights a dire scenario for the end of March. As the country prepares for the upcoming fuel price adjustment, the numbers indicate that petrol under-recoveries are hovering between R5.24 and R5.76 per litre, while diesel has deteriorated significantly, breaching the R10 mark with estimates between R9.86 and R10.00 per litre.
Households relying on illuminating paraffin are set to receive the harshest impact, facing an under-recovery of R11.46 per litre.
What’s at stake for April?
If the current trends persist, the projected fuel price increases for 1 April are alarming:
- Petrol 93: +R5.24/litre
- Petrol 95: +R5.76/litre
- Diesel 0.05% (wholesale): +R9.86/litre
- Diesel 0.005% (wholesale): +R10.00/litre
- Illuminating paraffin: +R11.46/litre
Should these hikes materialise, they would mark the largest increase in South African history, positioning the wholesale price of 0.005% diesel inland to soar to approximately R28.60 per litre—significantly surpassing the previous record of R25.53 seen in July 2022.
Meanwhile, petrol prices are expected to soar to R26.06 per litre, just shy of the all-time high of R26.74 set in the same month of 2022.
A tax burden looms
The expected fuel price increases do not factor in a 21 cents per litre fuel tax increase scheduled to take effect also on 1 April. After accounting for this tax, Petrol 95 inland could reach about R26.27 per litre, still trailing R0.47 below its record peak. Below are the anticipated inland and coastal pump prices:
Expected inland pump prices (April)
- 93 Petrol: March R20.19; April (excl. tax) R25.43; April (incl. tax) R25.64
- 95 Petrol: March R20.30; April (excl. tax) R26.06; April (incl. tax) R26.27
- Diesel 0.05%: March R18.53; April (excl. tax) R28.39; April (incl. tax) R28.60
- Diesel 0.005%: March R18.60; April (excl. tax) R28.60; April (incl. tax) R28.81
- Illuminating Paraffin: March R12.54; April R24.00
Expected coastal pump prices (April)
- 93 Petrol: March R19.40; April (excl. tax) R25.16; April (incl. tax) R25.37
- 95 Petrol: March R19.47; April (excl. tax) R25.23; April (incl. tax) R25.44
- Diesel 0.05%: March R17.70; April (excl. tax) R27.56; April (incl. tax) R27.77
- Diesel 0.005%: March R17.84; April (excl. tax) R27.84; April (incl. tax) R28.05
- Illuminating Paraffin: March R11.52; April R22.98
Calls for action
In light of the impending fuel crisis, the Democratic Alliance’s MP Dr Mark Burke has called for an urgent 50% reduction in fuel levies to provide much-needed relief to South Africans.
He has stated that government should be willing to collaborate with the Minister of Finance to reduce both the Road Accident Fund (RAF) and General Fuel Levies by 50% for the duration of the oil price shock.
Burke emphasised that the current levies collectively contribute R6.35 to fuel prices, and a reduction would reduce the burden by R3.17, alleviating some of the burden set to impact consumers.
Meanwhile, the Department of Mineral and Petroleum Resources has sought to clarify recent comments made by the Director of Fuel Pricing regarding working from home as a mitigation strategy for rising transport costs.
The department distanced itself from the interpretation that working from home was an official recommendation, stating that the comment was made within the context of broader discussions on fuel pricing mechanisms.
The department assured the public that it continues to engage on matters concerning fuel supply and pricing while acknowledging the significant cost-of-living pressures affecting South Africans.
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Picture: Unsplash
