Fuel prices look set to jump in March as diesel leads increases

South African motorists should brace for higher fuel costs in March, as the latest data from the Central Energy Fund (CEF) shows increasing under-recoveries across all fuel grades. The CEF’s daily snapshot for Monday points to petrol price hikes of about 1c/lfor 93-octane and 2c/lfor 95-octane. Diesel users face a much steeper rise, with 0.05% sulphur diesel set to increase by 45c/land 0.005% sulphur diesel by 47c/l.

Currently, 93-octane petrol, available only inland, is priced at R19.99/l, while 95-octane petrol costs R20.10/linland and R19.27/lat coastal stations. Wholesale diesel prices stand at R17.91/lfor inland 0.05% sulphur diesel and R17.95/lfor 0.005%, compared with coastal wholesale prices of R17.08/land R17.19/l, respectively. The CEF attributes the expected increases mainly to rising international product prices.

Brent crude oil is currently trading at about $67.20 a barrel, significantly higher than the sub-$60 lows recorded in mid-December and early January. A relatively strong rand has helped to cushion the impact of these under-recoveries; a weaker currency would likely have resulted in larger price increases. As usual, it’s important to remember these projections could still change before the end of the month, with final March fuel prices set to take effect on Wednesday, March 4.