South African motorists are bracing for a historic fuel price shock next week, with petrol set to breach the R30 per litre mark for the first time and diesel also heading for a new record high.
Latest data from the Central Energy Fund indicates that an unavoidable and steep hike is on the table when fuel prices are adjusted on the first Wednesday of the month, driven by a painful combination of elevated international oil prices and a weaker Rand.
According to the CEF’s unaudited mid-month data, 95 unleaded petrol is showing an under-recovery pointing to an increase of around R3.29 per litre, while 50ppm diesel is tracking an increase of about R3.19 per litre.
If implemented, the hike will push 95 unleaded petrol to just above R30 per litre in Gauteng, the first time in South African history that petrol has crossed that psychological threshold.
The surge follows a volatile year for fuel. 95 unleaded petrol rose to a new record above R28 per litre in June this year before stabilising slightly in the following months. That brief reprieve is now over.
Diesel drivers are set to be hit even harder. Diesel hit a record price above R31 per litre in May, and is now projected to soar to a new all-time high of R33.24 per litre inland.
The double blow comes as consumers are already under severe pressure from rising food prices, high interest rates and escalating living costs.
According to specialists, the bigger culprit has been the Rand, which has lost significant ground against the US dollar in recent weeks, amplifying the landed cost of imported fuel. Fuel is priced in dollars, so any weakness in the local currency is immediately felt at the pumps.
The Central Energy Fund’s snapshot captures daily movements in oil and exchange rates, and while the final price is only confirmed by the Department of Mineral Resources and Energy at month-end, the current over-recovery is so large that a major increase is now unavoidable barring an extraordinary market reversal.
According to reports. A full tank for an average 50-litre petrol vehicle, which cost around R1,400 in June, will now cost more than R1,500 inland.
For diesel SUV and bakkie drivers, as well as the transport and logistics sector, the pain will be even more acute.
Fuel prices are adjusted on the first Wednesday of every month, based on the CEF data and approved by the Department of Mineral Resources and Energy.
