Massive petrol price increase coming next week

 ·26 Apr 2018
Petrol price increase 2

Ahead of the official announcement on petrol price adjustments by the Department of Energy this week, the latest data from the Central Energy Fund shows that motorists can expect major pain at the pumps next week.

The CEF’s daily price tracking for 25 April 2018 shows that as it currently stands, petrol could rise by 92 cents per litre in May, while diesel could rise by in excess of a rand.

The data shows an under recovery of 91.69 cents for 95 grade petrol, and 91.90 cents for 93 grade, while diesel shows an under recovery of 107 cents.

The biggest contributors to this massive hike is the rising cost of international product prices, headlined by a huge jump in the oil price – while the movements in the exchange rate between the rand and the dollar has also played a part.

The jump could push local fuel prices to record highs in the coming months – over R15 a litre – where the previous highest price for fuel was in December 2017 when petrol cost R14.76 a litre.

The Automobile Association (AA), however, noted that prices are likely to rise by 49 cents a litre for petrol, 60 cents for diesel, and 52 cents for illuminating paraffin, using the CEF’s data from Tuesday.

Based on these figures, a litre of 93 octane unleaded petrol (inland) – which currently costs R14.23 a litre – will now cost R14.72. This is 23 cents higher than the previous record high of R14.49 in December last year.

However, the sharp depreciation of the rand the past few days will definitely impact future fuel prices.

“Going into May, there is already an under-recover of 46 cents a litre. If the rand doesn’t appreciate significantly against the US dollar, and if international prices don’t decrease, this will mean another increase into June,” the AA said.

“Motorists should be aware that further oil strength and rand weakness could produce further increases in the short to medium term,” the AA said.

This is what you can expect to pay in May:

Fuel April official May Expected
95 Petrol R14.48 R14.97
93 Petrol R14.23 R14.72
0.05% Diesel (wholesale) R12.75 R13.35

The article has been updated to reflect data as at the department of energy’s cut-off date for the period under review

 Read: Here is the expected petrol price for May 2018

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