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South Africa’s fuel prices are heading in the wrong direction once again, with the latest data from the Central Energy Fund pointing to increases for both petrol and diesel from the beginning of February.
However, as international oil prices have been volatile this month, it’s difficult to predict just how big these increases will be.
The latest daily snapshot from the CEF is pointing to hikes of around 25 cents for 95 Unleaded petrol and 32 cents for 93 ULP, however if current trends persist until the end of this week, we could be looking at increases closer to 70 cents.
500ppm diesel is currently looking set for a 5 cent increase, but that figure is growing by the day and could still climb to around 40 cents.
Keep in mind however that official prices have yet to be announced and much could still change between now and the end of this month. We will have a much clearer picture by the end of this week, so stay tuned to IOL for an update.
Should the 70 cent petrol price prediction come true, a litre of 95 Unleaded will increase to around R21.15 at the coast and R22.10 inland, where 93 ULP will retail at around R21.80.
Although still far from the record highs we saw in July last year, where 95 Unleaded cost R26.09 at the coast and R26.74 inland, South Africa’s fuel prices are still historically very high, and the recent international oil price movements are not a good omen.
Brent Crude Oil was trading at $87.60 at the time of writing on January 23, having risen from about $78 in early January.
According to Xinhua, oil prices have been climbing in spite of data showing a significant rise in US crude oil stockpiles. Prices are reportedly being boosted by expectations of higher demand in China, given its improved economic outlook for 2023.
