Fuel prices set for steep increase in May

Thanks to ongoing conflict in the Middle East and fluctuating international oil prices ($96,12, or R1,572.73 a barrel at the time of writing), South African motorists should brace for even higher fuel costs in May, with the latest data from the Central Energy Fund (CEF) showing growing under-recoveries across all fuel grades. The CEF’s latest daily snapshot, published on April 14, points to petrol price increases of about R2.62/lfor 93-octane and R2.99/lfor 95-octane. Diesel users face a far steeper rise, with 0.05% sulphur diesel expected to increase by R9.05/land 0.005% sulphur diesel by R9.07/l.

Currently, 93-octane petrol — available only inland — is priced at R23.25/l, while 95-octane petrol costs R23.36/linland and R22.53/lat the coast. Wholesale diesel prices stand at R25.90/lfor inland 0.05% sulphur diesel and R26.11/lfor 0.005%, compared with coastal prices of R25.07/land R25.35/lrespectively. Adding further pressure is the expected reinstatement of the government’s general fuel levy cut, after a temporary R3/lreduction across all grades of petrol and diesel.

This would compound the projected increases, potentially pushing petrol prices towards R30/land diesel closer to R40/l. As always, these projections are subject to change before month-end, with the final fuel price adjustments for May set to take effect on Wednesday May 6.