Brace for Impact: Fuel Prices Set to Surge in South Africa

Image Source: Petrol pumps at a fuel station/Getty Images

South African motorists, buckle up! After a brief respite, fuel prices are poised for a significant increase in February 2024. This news comes as a blow after three consecutive months of decreases, leaving many wondering: how much will it cost to fill up, and what’s driving this sudden change?

Petrol: Expect an increase of between 64c and 75c per litre for both 93LP and 95LP grades.
Diesel: Prices are expected to rise by around 63c per litre for both grades.
Illuminating Paraffin: This fuel will also see an increase, potentially by as much as 53c per litre.

Several factors are contributing to this price hike:

Rising international oil prices: Global oil prices have been steadily climbing due to various factors like supply chain disruptions and geopolitical tensions.
Weakening Rand: The South African Rand has weakened against the US dollar, making it more expensive to import oil.
Under-recoveries: The Central Energy Fund (CEF), which sets fuel prices in South Africa, is currently experiencing “under-recoveries,” meaning they are selling fuel below the acquisition cost. This necessitates price adjustments to recoup losses.

This fuel price increase will have a ripple effect across the South African economy. Transportation costs will rise, impacting the prices of goods and services. This could lead to inflation and put further strain on household budgets.

What You Can Do:

Plan ahead: Adjust your budget to accommodate the higher fuel costs.
Shop around: Compare fuel prices at different stations to find the best deals.
Consider fuel-efficient alternatives: Explore carpooling, public transportation, or cycling whenever possible.

The final fuel price adjustments for February will be announced on 7th February 2024. Keep an eye on news outlets and motoring websites for the latest updates.