After three consecutive fuel price increases, early data shows South Africans may see more pain at the pumps in February. <\/p>\n\n\n\n
Fuel prices did not start 2025 on a positive note, with prices going up by\u00a012 and 19 cents per litre for 93 and 95 petrol respectively, and between\u00a07.50 and 10.50 cents per litre for diesel.<\/p>\n\n\n\n
This was due to both the global price of petrol increase in December and the rand coming in weaker relative to November. <\/p>\n\n\n\n
According to the latest data from the Central Energy Fund, movements in international produce prices show a 27.704 cent under-recovery for 95 petrol in South Africa. <\/p>\n\n\n\n
The jump in oil prices comes amid economic hopes in one of the world’s largest economies, with China potentially seeing more demand. <\/p>\n\n\n\n
In his New Year’s address, Chinese President Xi Jinping said that China will be more proactive in measures to boost economic growth in 2025, potentially boosting oil demand. <\/p>\n\n\n\n
There is also an expectation of higher inventories as heating oil and gasoil are needed in the UK, EU and US amid severe cold fronts. <\/p>\n\n\n\n
The movement in the exchange rate between the rand and the US dollar has also led to an under-recovery of 37.0222 cents for 95 petrol. <\/p>\n\n\n\n
The rand has been severely impacted by US interest rate cut expectations cooling, leading to dollar strength. <\/p>\n\n\n\n
Combined, international prices and the rand would lead to an increase of 65 cents for a litre of 95 petrol. <\/p>\n\n\n\n
This picture is worse for diesel, with price increases ranging from 70 cents to 74 cents per litre. <\/p>\n\n\n\n
The proposed increases are as follows: <\/p>\n\n\n\n
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