South Africa - Durban - 4 November 2024 - The petrol price is set to increase by 25 cents at midnight. Picture: Tumi Pakkies/Independent Newspapers
The fuel price relief that South Africans enjoyed in the latter part of 2024, when petrol and diesel prices sank to three-year lows, looks set to be further eroded in the coming month.
The latest data from the Central Energy Fund is pointing to petrol price increases of around 64 cents for 95 Unleaded and 68 cents for 93 Unleaded, while diesel looks set to go up by between 70 cents (500ppm) and 72 cents (50ppm).
Although October 2024 saw petrol and diesel prices hit their lowest levels since February 2022, the following three months saw petrol rising by 54 cents and diesel by 82 cents.
Should the abovementioned predictions materialise, a litre of 95 Unleaded petrol will cost around R21.44 at the coast and R22.23 in February 2025, with 93 Unleaded retailing at around R22.02.
On the upside, petrol will still cost just over one rand less than it did a year earlier, with coastal 95 ULP having cost R22.52 in February 2024.
Given that this is the forecast in early January, the fuel price outlook could change during the remainder of the month.
As it stands however, a weaker rand and stronger international product prices are both contributing towards substantial under-recoveries for petrol and diesel.
Brent crude oil averaged $72.78 (R1,318) in December, while the rand averaged R18.11 to the US dollar, according to the Department of Mineral Resources and Energy. At the time of writing on January 9, oil was trading at $76.16 and the local currency at R18.98.
International oil prices started the week off at three-month highs, on the back of fresh Chinese economic stimulus and the likelihood of Donald Trump strengthening sanctions against major oil producer Iran.
Cape Times
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